Binance CEO to resign, plead guilty to US criminal charges

By Ovunc Kutlu

ISTANBUL (AA) - Binance CEO Changpeng Zhao is set to plead guilty to criminal charges in the US and resign as part of a $4.3 billion settlement, according to court filings Tuesday.

The Justice Department charged Zhao with violating the Bank Secrecy Act and "willfully" violating US economic sanctions, and "failing to implement and maintain" an effective anti-money laundering program, according to documents filed in the US District Court for the Western District of Washington.

Zhao agreed to pay a $50 million fine, while Binance agreed to plead guilty to criminal charges, forfeit $2.5 billion to the US government and pay a fine of $1.8 billion.

The company will continue to operate in the US under new rules, as it will be required to maintain a compliance program that ensures its business practices are in line with anti-money laundering requirements.

The world's biggest cryptocurrency trading platform will also be required to appoint an independent compliance monitor.

The Justice Department's case against Binance includes three criminal charges -- conducting an unlicensed money-transmitting business, violating the International Emergency Economic Powers Act and a conspiracy charge.

The US Securities and Exchange Commission in June filed 13 charges against Binance entities and Zhao for violating several US securities laws, which included operating unregistered exchanges, broker-dealers and clearing agencies, misrepresenting trading controls and oversight on the Binance.US platform and unregistered offer and sale of securities.

Binance's blockchain-based native token, BNB, saw its price plummet 6.3% to around $242 on Tuesday at 3.30 p.m. EDT.