Binance’s $4.3 Billion Fine Approved by US Court
Binance has agreed to pay a record-breaking $4.3 billion fine to resolve its legal issues, as approved by a US court. However, the founder, Changpeng Zhao, will need to remain in the US until the end of April for sentencing. The US prosecutor’s office has also requested that he surrender his passport and imposed additional travel restrictions on him.
According to Bloomberg, after the judge approved Binance’s plea agreement, the company will pay $4.3 billion, marking one of the largest criminal penalties in US history.
US District Judge Richard Jones stated during last week’s sentencing hearing in Seattle:
“This is indeed a case where the moral compass of the company was damaged by greed!”
As part of the deal, the company’s compliance will be monitored by an independent firm for a period of five years. Although the monitoring company has not been specified yet, according to previous reports, Sullivan & Cromwell, headquartered in New York, has a good chance of taking on this coveted role.
In December 2023, a US federal judge reviewed the bail order and decided to prohibit Binance’s founder, Changpeng Zhao (CZ), from leaving the country. He must stay within the US until the sentencing period. In mid-February, the court postponed the sentencing to April 30th.
According to Cointelegraph, the US prosecutor’s office has requested additional travel restrictions on Changpeng Zhao and asked him to hand over his Canadian passport and “all other valid and expired passports and travel documents” to his legal team. He must also provide a three-day notice before any travel, allowing the government to object.
Changpeng Zhao’s lawyer has filed a written motion opposing these restrictions. Changpeng Zhao had requested to visit his family in the United Arab Emirates before the sentencing, but the judge rejected the request. His legal team may continue to seek ways for him to leave the US.
CZ
Binance
Changpeng Zhao