Binance to pay $2.7 billion fine after hiding shady transactions from feds
Enlarge / Founder and CEO of Binance Changpeng Zhao, commonly known as "CZ," in May 10, 2022, in Rome, Italy. (credit: Antonio Masiello / Contributor | Getty Images Europe)
Now that a federal court has approved a settlement with Binance, the world largest cryptocurrency exchangeis hoping to move past a money-laundering scandal that forced its founder and CEO, Changpeng Zhao, to resign and overnight drained more than $1 billion in assets from its platform.
Under the settlement, Binance will "disgorge $1.35 billion of ill-gotten transaction fees and pay a $1.35 billion penalty" to the Commodity Futures Trading Commission (CFTC), the federal agencyannounced in a press release.
Additionally, Zhao will personally pay a $150 million civil monetary penalty. According to a plea agreement with the US Department of Justice-which ordered Binance to pay a "historic" penalty of $4.3 billion-Zhao's previously ordered $50 million fine can be credited under certain terms against the amount that Zhao owes the CFTC.