The world’s largest cryptocurrency platform, Binance, agreed this Tuesday to pay a fine of $4.3 billion and the resignation of its CEO, Changpeng Zhao, following an accusation described as a “turning point” by the authorities. of the United States.
This was announced at a press conference by Attorney General Merrick Garland, Treasury Secretary Janet Yellen, Deputy Attorney General Lisa Monaco and Commodity Futures Trading Commission Chairman Rostin Behnam, who stressed the importance of this action for the US Government.
Binance and the CEO resolve this way – with one of the largest fines in history for a company in the US – allegations of non-compliance with anti-money laundering regulations, unlicensed money transmission and violation of the US sanctions regimeindicates a statement.
Zheo, a Canadian national, pleaded guilty this afternoon in a Seattle court to a single charge of failing to maintain an effective anti-money laundering program and will pay a fine of $50 million; A Binance representative also appeared to plead guilty on behalf of the company.
Garland emphasized that the laws prevent US financial institutions from being available to “terrorist organizations, drug traffickers and sanctioned countries that threaten public safety and national security,” so the agreement involves imposing a supervisory body.
Binance will have to regularly report its activity to the authoritiesreview past transactions and all suspicious ones going forward, which will help in investigations of cybercrime “and terrorist financing, including the use of cryptocurrency platforms to support groups such as Hamas,” he said.
Garland cited transactions worth about $900 million between users in the US and Iran, and others worth “millions” of dollars with users in Syria. and in Ukrainian regions occupied by Russia; while Yellen cited transactions with Hamas, Palestinian Islamic Jihad, Al Qaeda and the Islamic State.
The Treasury Secretary noted the value of the agreement with Binance: it is the largest fine imposed on a money services business, the first resolution of a case agreed with a cryptocurrency platform, and also the first of its kind related to the violation of the regime of US sanctions
“Let me be clear: we are sending a message to the virtual currency sector. Today and in the future, if exchanges and financial technology companies want the tremendous benefit of being part of the American financial system and serving American customers, they must follow the rules,” Yellen stressed.Zhao, who founded Binance in 2017 and is perhaps the most influential figure in the crypto world, faces a maximum prison sentence of 18 months and is prohibited from getting involved in any way with the company until three years after a supervisory body is appointed.
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