According to a breaking development, the $4.3 billion fine of cryptocurrency exchange Binance was approved by a US judge.
Binance, the world's largest cryptocurrency exchange, was ordered to pay $4.3 billion as part of a plea agreement approved by US District Judge Richard Jones.
This sentence is one of the largest criminal sanctions in US history.
“This is truly a case where corporate ethics have been compromised by greed,” Judge Jones said during the sentencing hearing today.
Late last year, Binance and its founder Changpeng Zhao pleaded guilty to money laundering and sanctions charges, concluding a long-running investigation by prosecutors and regulators. As part of the plea agreement, Binance's compliance will be monitored by an independent firm for up to five years.
The monitor has not yet been appointed, but reports indicate that New York-based law firm Sullivan & Cromwell is likely to take on the role.
In their filing urging the judge to approve the settlement, prosecutors said Binance's actions left the financial system vulnerable to abuse. “In summary, given the nature and severity of Binance's misconduct, it appears that it was intentional and directed by senior executives, resulting in collateral consequences worth hundreds of millions of dollars,” prosecutors wrote.
Josh Eaton, deputy general counsel of Binance, stated that the company accepts full responsibility for its past actions. He also highlighted the compliance improvements the company has undertaken over the past few years.
Judge Jones stated that Binance was aware of its obligations under US law, but took deliberate decisions not to comply.
He stated that the penalty is intended to deter similar behavior in the future by Binance and other companies and to protect customers.
*This is not investment advice.