Binance founder Changpeng Zhao pleads guilty to violating money laundering rules

economictimes.indiatimes.com:

cryptocurrency exchange in the world, pleaded guilty to money laundering violations, the government said Tuesday, a stunning blow to the most powerful and influential figure in the global crypto industry.

Binance itself also pleaded guilty and agreed to pay $4.3 billion in fines and restitution to the government, according to federal authorities. Under the agreement, Binance reached settlements with the Justice Department, the Treasury Department and the Commodity Futures Trading Commission, which have all been investigating the company for years.

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As part of his guilty plea, Zhao agreed to pay a $50 million fine and step down from his role as the company's chief executive. Zhao faces up to 18 months in prison under federal sentencing guidelines, but prosecutors are keeping open the possibility of asking for a stiffer penalty, according to senior Justice Department officials.

Binance, as part of its own plea deal with federal prosecutors, will accept the appointment of a government monitor to oversee the business. Zhao is barred from any involvement in Binance until three years after the monitor is appointed, court papers show.

Zhao and a representative for Binance entered the guilty pleas in federal court in Seattle. In a statement, Binance said the agreement acknowledged «our company's responsibility for historical, criminal compliance violations.» The company said Richard Teng, a top executive, would take over as chief executive but that Zhao would