The U.S. court has validated a settlement requiring the cryptocurrency exchange Binance and its previous CEO, Changpeng Zhao, to pay significant fines. The ruling, which concludes a lengthy investigation by the U.S. Commodity Futures Trading Commission (CFTC), imposes a $2.7 billion payment by Binance and a $150 million payment by Zhao.
The court’s approval finalizes the November agreement, placing a hefty $1.35 billion disgorgement fee on Binance for profits earned through illicit means, along with an equal amount as a civil penalty.
This settlement comes after Zhao’s resignation and admission of the exchange’s shortcomings in adhering to U.S. anti-money laundering regulations. The CFTC’s allegations involved Binance’s failure to report suspicious activities, some linked to terrorist financing and illegal content platforms.
Binance’s statement in response to the settlement highlighted the company’s commitment to rectifying past compliance failures and moving forward with improved practices.
