A U.S. Federal Judge has been urged to accept a plea deal from U.S. authorities with the cryptocurrency exchange, Binance. Prosecutors, in a memorandum, have asserted that the agreed-upon sanctions are commensurate with the extent of Binance’s deliberate law violations.
US Judge Urged to Approve Binance’s $4.3 Billion Plea Deal
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Binance’s Alleged Refusal to Register as a Money Services Business
U.S. prosecutors have reportedly urged a federal judge to ratify a penalty imposed on the cryptocurrency exchange, Binance Holdings. The prosecutors argue that the proposed penalty, which Binance has agreed to pay, is commensurate with the crimes committed by the crypto exchange.
The charges against Binance, one of the world’s largest cryptocurrency exchanges, stem from its alleged refusal to register as a money services business. Furthermore, prosecutors insist that Binance’s failure to implement an anti-money laundering program left its users and the U.S. financial system vulnerable to exploitation.
‘Collateral Consequences’
As reported by Bitcoin.com News in late 2023, Binance, accused of willfully violating U.S. anti-money laundering and sanctions laws, has agreed to pay $4.3 billion in penalties. As part of the settlement deal, Changpeng (CZ) Zhao agreed to step down as CEO of Binance Holdings. To formalize the agreement, U.S. prosecutors have asked a judge to accept the plea deal.
“In sum, given the nature and seriousness of Binance’s misconduct — it was intentional and led by senior executives, with hundreds of millions of dollars of collateral consequences,” the prosecutors stated in a memo recently filed with the Seattle Federal Court.
According to a Bloomberg report, the plea deal also calls for Binance to be monitored for up to five years. Regarding the fate of CZ, who remains in the U.S., prosecutors are reportedly seeking a custodial sentence not exceeding 18 months.
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