US prosecutors asked the federal judge to accept the plea agreement of cryptocurrency exchange Binance. The company was found guilty of money laundering and sanctions violations last year and agreed to pay one of the largest fines in US history ($4.3 billion).
Prosecutors justified the heavy penalty, stating that Binance deliberately violated the country's economic sanctions laws and left the financial system open to abuse. The misconduct was intentional and orchestrated by top executives, resulting in hundreds of millions of dollars in collateral consequences, according to prosecutors.
The plea agreement, filed yesterday in a federal court in Seattle, also calls for monitoring the company for up to five years. Prosecutors argue that the nature and seriousness of Binance's misconduct make the sentences in the proposed plea deal appropriate.
According to prosecutors, Binance's refusal to register as a so-called money services business that transfers or converts money and its failure to implement an effective anti-money laundering program left the company, its customers and the U.S. financial system vulnerable to those who wanted to exploit the system for their own benefit.
Binance's former CEO Changpeng Zhao pleaded guilty to money laundering. Zhao is expected to be sentenced in April and face up to 10 years in prison. However, under a plea agreement, he is expected to receive no more than 18 months in prison.
*This is not investment advice.
