Binance Pleads Guilty to Bank Secrecy Act Violations, Agrees to $4.3 Billion Penalty and CEO Resignation

Binance, the world’s largest cryptocurrency exchange, has pleaded guilty to violations of the Bank Secrecy Act and other charges. As part of the settlement, the company’s CEO, Changpeng Zhao, will step down from his position.

The Justice Department announced Tuesday that Binance had admitted to violating U.S. laws to prevent money laundering and sanctions violations. The company agreed to pay the government $4.3 billion in fines and fees, the largest penalty in the history of the Treasury Department.

In a news release, the Justice Department said that Binance had failed to take proper steps to prevent money laundering on its platform and had operated illegally in the U.S., permitting traders in nations currently sanctioned by the federal government to engage in business deals with Americans.

Treasury Secretary Janet Yellen said in prepared remarks that Binance was guilty of “consistent and egregious violations of U.S. anti-money laundering and sanctions laws.”

The settlement marks a major shift for Binance, which has grown rapidly in recent years and become one of the most popular cryptocurrency exchanges in the world. Zhao, who founded the company in 2017, will step down as CEO and will be replaced by a new executive.

The settlement is a reminder that cryptocurrency exchanges must take steps to ensure they are in compliance with U.S. laws and regulations. The Justice Department’s investigation into Binance is a sign that the government is taking a closer look at the cryptocurrency industry and is willing to take action against companies that fail to comply with the law.