Binance and CEO Plead Guilty to Federal Charges in $4B Resolution

Attorney General Garland holds a press conference to announce Binance and its CEO have pleaded guilty to federal charges in a $4 billion resolution.

“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed – now it is paying one of the largest corporate penalties in U.S. history. In just the past month, the Justice Department has successfully prosecuted the CEOs of two of the world’s largest cryptocurrency exchanges in two separate criminal cases. The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal.”

-Attorney General Merrick B. Garland

“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform. Today’s historic penalties and monitorship to ensure compliance with U.S. law and regulations mark a milestone for the virtual currency industry. Any institution, wherever located, that wants to reap the benefits of the U.S. financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime or face the consequences.”

-Secretary of the Treasury Janet L. Yellen

“A corporate strategy that puts profits over compliance isn’t a path to riches. It’s a path to federal prosecution. These charges and guilty pleas – combined with a more than $4 billion financial penalty – send an unmistakable message to crypto and defi companies: if you serve U.S. customers, you must obey U.S. law.”

-Deputy Attorney General Lisa O. Monaco

“Binance’s and Zhao’s willful violations of anti-money laundering and sanctions laws threatened the U.S. financial system and our national security, and each of them has now pleaded guilty. Make no mistake: when you place profits over compliance with the law, you will answer for your crimes in the United States.”

-Acting Assistant Attorney General Nicole M. Argentieri

“Binance’s crimes gave sanctioned customers unfettered access to American capital and financial services. This prosecution is a warning that companies that do not build sanctions compliance into their services face serious criminal penalties, as do the executives who lead them.”

-Assistant Attorney General for National Security Matthew G. Olsen

“Binance’s activities undermined the foundation of safe and sound financial markets by intentionally avoiding basic, fundamental obligations that apply to exchanges, all the while collecting approximately $1.35 billion in trading fees from U.S. customers. American investors, small and large, have demonstrated eagerness to incorporate digital asset products into their portfolios. It is our duty to ensure that when they do so, the full protections afforded by our regulatory oversight are in place, and that illegal and illicit conduct is swiftly addressed. When, as here, an entity goes even further, deliberately avoiding to employ meaningful access controls, intentionally avoiding knowing customers’ identities, and actively concealing the presence of U.S. customers on its platforms, there is no question that the CFTC will strike hard and aggressively.”

-Chairman Rostin Behnam of the Commodity Futures Trading Commission (CFTC)