Binance Exchange Ordered to Pay $4.3 Billion to US Ministry of Justice

The federal court in the Western District of Washington has given the green light for Binance, a major cryptocurrency exchange, to pay $4.3 billion to the US Ministry of Justice. This payment is part of a deal following Binance's admission of guilt to various charges, including violations of sanctions and anti-money laundering laws. Bloomberg reported the development, emphasizing the significance of the decision.

As part of the memorandum signed between Binance and the Ministry of Justice, the platform has agreed to implement substantial measures to ensure ongoing compliance with US laws. The judge stressed that the verdict aims to deter similar behavior by Binance and other cryptocurrency companies in the future, as well as to protect customers.

While the court has approved the payment, it has yet to determine an independent monitor to oversee Binance's compliance for a five-year period. This oversight is crucial in ensuring the exchange adheres to regulatory requirements.

In addition to the financial penalties imposed on Binance, the platform's founder, Changpeng Zhao, pleaded guilty to violating banking secrecy laws and agreed to step down as CEO. He faces a fine of $50 million and has posted a $175 million bond to remain free pending sentencing. Zhao's case is scheduled for April, with a potential sentence of up to 18 months in prison.