FAQs
Binance's founder and chief executive officer (CEO), Changpeng Zhao, a Canadian national, also pleaded guilty to failing to maintain an effective anti-money laundering (AML) program, in violation of the BSA and has resigned as CEO of Binance.
What is the fine for the Binance 4.3 B? ›
Binance Holdings Ltd. will pay $4.3 billion after a judge approved a plea deal that levies one of the largest criminal penalties in US history against the world's biggest cryptocurrency exchange.
What is the sentencing for the CEO of Binance? ›
Changpeng Zhao, the founder of the world's leading cryptocurrency exchange, was sentenced on Tuesday to four months in prison after pleading guilty last year to charges that he failed to maintain an effective anti-money laundering program.
How much did the US government fine Binance? ›
In November, Binance agreed to pay a $4.3 billion settlement to the U.S. government, including a forfeiture of $2.5 billion and a fine of $1.8 billion. Former Binance CEO Changpeng Zhao was charged with violating the Bank Secrecy Act and agreed to step down.
Is Binance.US in trouble? ›
Binance.US regulatory challenges
The SEC charged Binance founder Changpeng Zhao and Binance.US with securities law violations in 2023. The regulator alleged that Binance and Zhao secretly controlled Binance.US. Zhao was also sentenced to four months in prison in April 2024 for violating the Bank Secrecy Act.
Why was Binance banned in the US? ›
It has been alleged that Binance could be used as a funding mechanism for terrorist groups. In November 2023, the company pleaded guilty in a U.S. federal court to money laundering, unlicensed money transmitting, and sanctions violations.
Will Binance pay the fine? ›
Binance: Binance registers with FIU-IND, pays Rs 18.8 crore fine to restart operations in India - The Economic Times.
Why did Binance get a fine? ›
Binance and Zhao admitted to violating anti-money laundering laws, as well as to unlicensed money transmitting and sanctions violations in a plea agreement with the Justice Department in November.
What does Binance US report to the IRS? ›
Binance US uses Form 1099-MISC to report miscellaneous ordinary income to the IRS. The crypto-specific edition of the 1099-MISC is used to report the gross income of traders who receive cryptocurrency rewards or engage in staking.
Who is the richest person in Binance? ›
Zhao is the founder of Binance, the world's largest cryptocurrency-exchange by volume. The company offers markets in more than 360 cryptocurrencies and has said it has over 150 million users. Zhao was sentenced to four months jail in April 2024 after pleading guilty to anti-money laundering violations.
Binance's billionaire founder Changpeng Zhao has reported to a low-security federal prison in Lompoc, California. Zhao was sentenced to four months in prison in April after pleading guilty to charges of enabling money laundering at his crypto exchange.
Who is the real owner of Binance? ›
Changpeng Zhao, known as CZ, is a serial entrepreneur with an impressive track record of successful startups. He launched Binance in July 2017 and, within 180 days, grew Binance into the largest digital asset exchange in the world by trading volume.
Why are U.S. citizens not allowed on Binance? ›
Even though Binance is not based in the U.S., in fact it has no official headquarters, if it services U.S. customers it must comply with U.S. law. Also implicit in these charges is the CFTC's belief that the assets are commodities as opposed to securities.
Did the founder of Binance plead guilty? ›
U.S. District Judge Richard A. Jones credited the founder and former CEO of Binance for taking responsibility for his wrongdoing. Zhao, 47, pleaded guilty in November to one count of failing to maintain an anti-money-laundering program.
What states in usa is Binance restricted? ›
Unfortunately, Binance.US services are currently not available to customers who reside in the following states and regions:
- Alaska.
- American Samoa.
- Georgia.
- Guam.
- Maine.
- Northern Mariana Islands.
- New York.
- North Carolina.
SEATTLE, April 30 (Reuters) - Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.
What did Binance plead guilty of in the doj settlement? ›
On November 21, 2023, the Department of Justice announced that Binance Holdings Limited (Binance) pleaded guilty to conspiracy to violate the Bank Secrecy Act (BSA) and to fail to register as a money transmitting business, failure to register as a money transmitting business, and violating the International Emergency ...
Is Binance CEO in jail? ›
Changpeng Zhao, the former CEO of Binance, has started a four-month prison sentence in Lompoc, California, for not preventing money laundering on the exchange. Zhao pleaded guilty and received a lighter sentence than prosecutors had sought. He also agreed to pay a $50 million fine.
What law did Binance break? ›
Prosecutors alleged in the charges that Binance did not have any "know-your-customer requirements," which is a direct violation of U.S. money-laundering laws.
