The US court accepted Binance's guilty plea and the roughly USD 4.3 billion punishment, which consists of a forfeiture of USD 2.51 billion and a criminal fine of USD 1.81 billion. The announcement came after Changpeng Zhao, the founder of Binance, had his attorneys oppose to proposed amendments to his bond made by the government.

The US's examination into Binance's activities

In November 2023, Binance first declared that an investigation had shown that the exchange had neglected to disclose over 100,000 questionable transactions. At that point, the CEO and creator of the exchange also resigned from their roles after entering a guilty plea for failing to maintain a suitable AML programme. The guilty plea was a component of coordinated agreements with the US Commodity Futures Trading Commission (CFTC), the Office of Foreign Assets Control (OFAC), and the Financial Crimes Enforcement Network (FinCEN) of the Department of Treasury. The inquiry also revealed that, since its founding in 2017, Binance has put growth and profitability ahead of adherence to US laws.

Additionally, Binance was charged with failing to implement safeguards to stop US users from transacting with clients in prohibited countries, resulting in about USD 898 million worth of transactions between US users and Iranian citizens. In addition, the corporation was supposed to be monitored for three years in order to enhance its sanctions and AML compliance processes.

Binance highlighted in a recent statement that it took ownership of the situation, improved its Know Your Customer (KYC) and AML protocols, and advanced the changes needed to comply with the terms of its plea deal. Additionally, the business plans to expand on its initiatives related to security, transparency, and compliance. Furthermore, the former CEO and creator of the corporation admitted guilt to charges of money laundering and was set free in the US on a USD 175 million bail. In exchange for his plea, Zhao agreed to pay a USD 50 million fine and give up his position as CEO of Binance. Prosecutors highlighted in a court document that the intended modifications were intended to comply with directives that Zhao stay in the continental US and be supervised by court officers until his sentence in April 2024.The terms include emphasised giving three days' notice of any travel arrangements, giving up his passports, and staying in his current address until he gets permission to go elsewhere. Officers providing pretrial services also advise that Zhao's whereabouts be tracked. Requests for comment from Zhao's solicitors were not answered at the time of the announcement.