Written by 3:59 pm Interesting Reads, News, Popular Blogs, SLIDER, Trending News

Binance FTX Déjà Vu as CEO Pleads Guilty and Company Charged with $4.3 Billion in Fines

Binance FTX Déjà Vu as CEO Pleads Guilty and Company Charged with $4.3 Billion in Fines
Sharing is caring


Binance CEO Changpeng Zhao pleaded guilty to money laundering in Seattle a few hours back. The exchange is now slapped with a $4.3 billion fine (AUD 6.6 billion), the largest in corporate history.

Figure 1 – Binance CEO

Binance allegedly allowed transactions for terrorist groups and other entities sanctioned by the US authorities. Binance FTX and who next – a key question only time will answer on the backdrop of the ongoing Israel-Hamas crisis.

Attorney General Merrick Garland remarked – “Binance has committed crimes to become the world’s largest cryptocurrency exchange, which is why they’re paying one of the biggest corporate penalties in history.”

What is Binance and the Binance CEO Charged With?

As the largest cryptocurrency exchange in the world, Binance has hosted transactions across US-sanctioned zones, including- but not limited to Iran, Syria, and Cuba.

A joint probe was conducted by US federal agencies, including the Justice Department, the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and others.

According to the official statements filed against Binance and CEO Changpeng, Binance overlooked ‘legal obligations in pursuit of profit’ by extending financial assistance and services via its platform to ‘terrorists and cyber criminals.’

Binance will now commit $1.81 billion within the next 15 months and $2.51 billion as forfeiture against ‘ill-gotten gains from transactions’ to sanctioned entities.

This news coincides with the fact that FTX founder Sam Bankman-Fried was convicted of fraud, leading to the complete meltdown of the FTX crypto exchange.

Will we see an FTX-like meltdown for Binance?

Binance CEO Changpeng Zhao is facing a maximum of 18 months behind bars. An immediate repercussion saw Changpeng release a statement citing his immediate resignation as CEO of Binance. In an emotional statement on X, he mentions that ‘it is the right thing to do’ and that he ‘made mistakes’ and ‘must take responsibility.’ Changpeng will continue to maintain his share in Binance.

This starkly contrasts with FTX founder Sam, who has been around the world and more during the international backlash.

Binance stated that it has ‘resolved with several US agencies’ regarding the investigation. As such, to date, Binance will continue to function, albeit under a new CEO.

Further, Binance has withdrawn from its planned FTX purchase after completing due diligence. This means the Binance FTX deal is officially off the radar, and FTX is considering complete liquidation.

The heavy involvement of multiple US financial institutions in cryptocurrencies, including JP Morgan, Blackrock Investments, and others, will help maintain investor optimism about crypto. Despite the ongoing Israel-Hamas conflict, Binance might suspend functions in sanctioned entities while continuing operations in key geographical locales, including the US, Australia, EU, and Asia.

Disclaimer

The Content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content), is a service of COLITCO LLP and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is not a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Colitco LLP is neither licensed nor qualified to provide investment advice through this platform. Users should inquire about any investments, and Colitco LLP strongly suggests that users seek advice from a financial adviser, stockbroker, or other professional (including taxation and legal advice) as necessary. Colitco, at this moment, disclaims any liabilities to any user for any direct, indirect, implied, punitive, special, incidental, or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Colitco LLP. Some images/music used on this website are copyrighted to their respective owner(s). Colitco LLP does not claim ownership of any pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions, or are believed to be in the public domain. We have used reasonable efforts to accredit the head wherever it was indicated as or found to be necessary.

Visited 38 times, 1 visit(s) today

Sharing is caring
Close Search Window
Close