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US prosecutors have asked a federal judge to approve a defense agreement with one of the world’s largest cryptocurrency exchanges, Binance. Binance had agreed to pay a staggering $4.3 billion fine after admitting to anti-money laundering (AML) and sanctions violations.
US Prosecutors Demand Acceptance of $4.3 Billion Settlement
US prosecutors argue that deliberate abuses by Binance’s senior executives posed a serious threat to the country’s financial system. In a new sentencing memo presented on February 16th, they requested a federal judge in Seattle to accept the defense agreement for Binance. According to Bloomberg, the memo highlighted intentional abuses by senior executives and justified the proposed penalties.
Binance’s defense agreement includes provisions for the company to be monitored for up to five years to ensure regulatory compliance. According to prosecutors, Binance’s failure to register as a money services business and implement an effective anti-money laundering program made the platform vulnerable to exploitation by malicious actors seeking to evade sanctions and launder money.
Additionally, Binance’s founder and former CEO Changpeng Zhao admitted to money laundering charges and faced up to 10 years in prison, but is expected to receive a reduced sentence under the plea agreement. Zhao’s admission of guilt led to the appointment of a new CEO, marking a significant moment in Binance’s history.
For the new CEO Richard Teng, appointed to lead Binance through this challenging period, the top priority became preventing a mass exodus of customers. The outcome of Binance’s legal troubles and efforts to address regulatory concerns is of critical importance due to its potential wide-ranging impact on the future of the cryptocurrency world.
Changpeng Zhao Awaits Sentencing Announcement
The federal court in Seattle announced on February 12th that it had postponed the sentencing of Binance’s founder and former CEO Zhao until the end of April 2024. The decision, initially expected at the end of February, came amid ongoing legal proceedings against Zhao, who faces money laundering and other charges.
Zhao was released on a $175 million bail with the condition of remaining within the US borders and is now awaiting the announcement of his sentence.
