US Judge Approves Binance's $4.3 Billion Guilty Plea 573m1c Technology News

US District Judge Richard Jones in Seattle approved the plea, which includes a $1.81 billion criminal fine and $2.51 billion of forfeiture. 6t1r4v

By Reuters | Updated: 26 February 2024 14:02 IST

US Judge Approves Binance's $4.3 Billion Guilty Plea

Photo Credit: Reuters 3v6d2p

Binance said it has upgraded its anti-money laundering and "know-your-customer" protocols

Highlights

Changpeng Zhao has been free in the United States on a $175 million bond
Binance failed to report more than 100,000 suspicious transactions
In a statement on Friday, Binance said it accepted responsibility

ment

A US judge on Friday accepted cryptocurrency exchange.

US District Judge Richard Jones in Seattle approved the plea, which includes a $1.81 billion (roughly Rs. 15,000 crore) criminal fine and $2.51 billion (roughly Rs. 20,801 crore) of forfeiture, about an hour after the government proposed changes to Binance founder Changpeng Zhao's bond, drawing an objection from Zhao's lawyers.

Binance's plea announced in November resolved a years-long probe that found the exchange had failed to report more than 100,000 suspicious transactions involving designated terrorist groups including Hamas, al Qaeda and the Islamic State of Iraq and Syria, or ISIS.

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Prosecutors said Binance's platform also ed the sale of child sexual abuse materials and was among the largest recipients of ransomware proceeds.

In a statement on Friday, Binance said it accepted responsibility, has upgraded its anti-money laundering and "know-your-customer" protocols, and has made "significant progress" toward changes required under its plea agreement.

Zhao has been free in the United States on a $175 million (roughly Rs. 1,450 crore) bond after also pleading guilty in November to money laundering violations.

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His plea included a $50 million (roughly Rs. 414 crore) fine and required that he step down as Binance chief executive.

In a court filing, prosecutors said the proposed bond changes were meant to reflect Jones' orders that Zhao stay in the continental United States and under court officer supervision until his April 30 sentencing.

The conditions include that Zhao provide three days notice of any travel plans, surrender his ports and maintain his current residence unless he gets approval for a change.

Pretrial services officers are recommending that Zhao also be subjected to location monitoring.

Prosecutors said they have discussed the changes with Zhao's lawyers several times, but that they "object to this motion as written."

Zhao's lawyers did not immediately respond to requests for comment.

The cases are U.S. v Binance Holdings Ltd, U.S. District Court, Western District of Washington, No. 23-cr-00178, and U.S. v. Zhao in the same court, No. 23-cr-00179.

Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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