Overseas version of Binance settles with CFTC, faces fines and strengthens compliance system

Overseas Binance fined $2.7 billion

It was announced on the 18th that a settlement has been reached between global cryptocurrency exchange Binance and the U.S. Commodity Futures Trading Commission (CFTC).

In addition to paying a $1.35 billion fine, Binance is required to waive an equal amount of “fraudulent transaction fees.” Meanwhile, former Binance (.com) CEO Changpeng Zhao (CZ) must pay a $150 million (21.4 billion yen) fine, one-third of which will be paid within the next 30 days. is to be paid.

According to a consent order signed by Judge Manish Shah of the United States District Court for the Northern District of Illinois, Binance, under Mr. CZ’s direction, actively solicited U.S. customers to sell digital assets on Binance (.com). engaged in derivative transactions.

Although the company is aware of the U.S. regulations, it “chooses to ignore” them. It also allowed at least two prime brokers to open “sub-accounts” that did not comply with Binance’s KYC (Know Your Customer) procedures, allowing U.S. customers to trade directly on the platform. .

As part of the settlement, Binance and Mr. CZ have committed to the exchange implementing a strong corporate governance structure, including a board of directors with independent members, a compliance committee, and an audit committee.

In November, it was reported that Binance (.com) had reached a settlement with the US Treasury Department. Pleaded guilty to charges related to anti-money laundering violations and agreed to pay a fine of approximately 633 billion yen ($4.3 billion), and Mr. CZ also pays a criminal fine of approximately 7.4 billion yen ($50 million) I agreed and resigned as CEO.

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