In November 2023, Binance agreed to pay $4.3 billion in fines and hire an independent compliance monitor as part of a plea agreement with the DOJ over money laundering offenses. Changpeng “CZ” Zhao, a co-founder of the company, also agreed to resign as CEO. He was recently given a four-month jail sentence.
This Is Why the DOJ Selected FRA Sullivan & Cromwell aside
FTX creditors filed a class action complaint against Sullivan & Cromwell in February, as reported by Bitcoinist. The claim accused the law firm of being involved in the exchange’s collapse. FTX’s new management has consistently defended S&C while praising its efforts to revive the business.
FTX said on Wednesday, May 8, that its clients would receive a complete reimbursement for any damages they sustained due to the collapse.
In Canada, Binance Will Pay $4 Million Owing To Problems With Compliance
Other than the US, regulatory agencies in other nations have been putting much pressure on Binance. FINTRAC, Canada’s financial authority, most recently fined the largest cryptocurrency exchange in the world $4.4 million (C$6 million).
FINTRAC charged Binance with violating anti-money laundering regulations. According to Bitcoinist, the business should have filed substantial virtual currency transaction reports and registered with the Canadian financial authorities.
