©Reuters. FILE PHOTO: Figurines with computers and smartphones are seen in front of the Binance logo in this illustration taken February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
By Jonathan Stempel
(Reuters) – A U.S. judge on Friday accepted Binance’s guilty plea and a fine of more than $4.3 billion for violating federal anti-money laundering and sanctions laws through internal control failures at the world’s largest cryptocurrency exchange .
U.S. District Judge Richard Jones in Seattle approved the request, which includes a criminal fine of $1.81 billion and a forfeiture of $2.51 billion, about an hour after the government proposed bail changes for the Binance founder Changpeng Zhao, prompting an objection from Zhao’s lawyers.
Binance’s appeal announced in November resolved a years-long investigation that found the exchange had failed to report more than 100,000 suspicious transactions involving designated terrorist groups including Hamas, al Qaeda and the Islamic State of Iraq and of Syria, or ISIS.
Prosecutors said Binance’s platform also supported the sale of child pornography and was among the largest recipients of ransomware proceeds.
In a statement on Friday, Binance said it had accepted responsibility, had updated its anti-money laundering and “know your customer” protocols, and had made “significant progress” toward the changes required by its plea agreement.
Zhao was freed in the United States on $175 million bail after pleading guilty in November to money laundering violations.
His request included a $50 million fine and required that he resign as Binance’s CEO.
In a court filing, prosecutors said the proposed bond changes were intended to reflect Jones’ orders that Zhao remain in the continental United States and under the supervision of a court officer until his April 30 sentencing.
The conditions include that Zhao provide three days’ notice of any travel plans, surrender his passports and maintain his current residence unless he obtains approval for a change.
Investigation officials recommend that Zhao also undergo location monitoring.
Prosecutors said they have discussed the changes several times with Zhao’s lawyers, but that they “oppose this motion as written.”
Zhao’s lawyers did not immediately respond to requests for comment.
The cases are US v. Binance Holdings Ltd, United States District Court, Western District of Washington, No. 23-cr-00178, and US v. Zhao in the same court, No. 23-cr-00179.