The U.S. Attorney’s Office for the Western District of Washington has secured a record in criminal recoveries, largely driven by Binance’s settlement.
Binance's Billion-Dollar Settlement Fuels Record DOJ Criminal Recoveries
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Binance’s Billions Propel U.S. Attorney’s Office to Record Criminal Recoveries
The U.S. Attorney’s Office for the Western District of Washington announced on Feb. 12 that it collected a record-breaking $1.5 billion in criminal actions for Fiscal Year 2024, with the majority coming from a settlement with cryptocurrency exchange Binance. U.S. Attorney’s Offices operate under the Department of Justice (DOJ). “Criminal payment by crypto exchange Binance for failing to have money laundering protections boosts collections to new record,” the Attorney’s Office stated.
Binance, the world’s largest cryptocurrency exchange, pleaded guilty to failing to register as a money-transmitting business, willfully violating the Bank Secrecy Act, and causing violations of U.S. sanctions. The payment was part of a broader $4.3 billion criminal fine and forfeiture agreement, one of the largest enforcement actions ever against a crypto company. U.S. Attorney Tessa M. Gorman highlighted the significance of the settlement, stating:
That $1.5 billion coming through our office, is part of the $4.3 billion criminal fine and forfeiture. It is a record in the Western District of Washington.
The case underscored concerns about Binance’s compliance with U.S. financial regulations and marked a turning point in federal efforts to hold cryptocurrency firms accountable for regulatory violations.
While Binance’s penalty accounted for nearly the entire amount collected in criminal actions, the DOJ also secured additional recoveries from other financial crimes. These included tax fraud cases and asset forfeitures, but the Binance case was by far the most significant contributor to the record-setting collections.
This week, the U.S. Securities and Exchange Commission (SEC) and Binance have jointly requested a 60-day pause in their ongoing legal battle, citing the potential impact of the SEC’s newly established crypto task force. This move reflects a shift towards a more crypto-friendly regulatory approach under SEC Acting Chairman Mark Uyeda, who launched the task force to improve the agency’s relationship with the crypto industry. The SEC had previously filed a lawsuit against Binance, alleging violations of U.S. securities laws. This pause could signal broader changes in the SEC’s actions against crypto exchanges, potentially leading to dismissals or favorable settlements for defendants.
