United States of America: Issued ruling in DoJ lawsuit against Binance over alleged anti-money laundering, unlicensed money transmitting, and sanctions violations

On 21 November 2023, the Department of Justice (DoJ) disclosed that Binance Holdings Limited and its CEO have entered a guilty plea to federal charges, resulting in a settlement of approximately USD 4 billion. Binance, recognised as the world's largest cryptocurrency exchange, admitted to breaching the Bank Secrecy Act (BSA), engaging in unlicensed money transmitting, and violating the International Emergency Economic Powers Act (IEEPA). The settlement also includes an admission of guilt by its CEO, Changpeng Zhao, for not maintaining an effective anti-money laundering (AML) program. This agreement is part of a collaborative effort with various US regulatory agencies. The DoJ's investigation found that Binance's rapid growth involved non-compliance with legal standards and facilitated monetary transactions with illegal entities. Binance has consented to pay a financial penalty and has committed to appointing an independent compliance monitor for the next three years to improve its AML and sanctions compliance programs.