Binance Holdings Ltd., the biggest cryptocurrencycurrency exchange globally, will have to pay $4.3 billion following the judge’s acceptance of a plea deal that carries one of the worst criminal penalties in US history.
US District Judge Richard Jones said, “This really is a case where the ethics of the company were compromised by greed,” during a sentencing hearing in Seattle on Friday.
At the close of the previous year, Binance and its founder, Changpeng Zhao, pleaded guilty to accusations of money laundering and sanctions, which put an end to a protracted investigation by prosecutors and regulators. Binance admitted that it allowed trades with terrorist groups like as Hamas on the exchange.
According to the agreement, the corporation’s compliance would be monitored for a maximum of five years by an unbiased entity. There is currently no appointed monitor.
In a petition, prosecutors said that Binance allowed “those who seek to exploit our system for their own gain” access to the financial system, and they urged the judge to approve the deal.
“In summary, given the scope and seriousness of Binance’s misconduct, it was intentional and overseen by top executives, with hundreds of millions of dollars in unintended consequences,” the prosecution said.
Judge Josh Eaton was told by Binance’s deputy general counsel that the company “accepts full responsibility for its past and for the reasons we’re sitting here today.” “We’re also proud of the compliance enhancements” that have been implemented over the past several years, Eaton continued.
Even though Binance knew it was subject to US law, according to Jones, “the defendant made deliberate decisions not to follow US laws despite this knowledge.” He said that in addition to safeguarding the clients, the sentence is meant to deter Binance and other companies of a similar nature from operating in a similar manner in the future.
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