Dear Readers,

We all know that Binance is the largest cryptocurrency exchange and it has the highest number of registered users. The platform of Binance offers various crypto features and its value chain features.

Every thing went well for Binance until 2023.

Binance was alleged to have multiple failures which were reported over 1,00,000 transactions  were suspicious. 

This including the transfers of the world's well known terrorists groups like Hamas, Al Qaeda and ISIS. 

Binance was also alleged to have supported the the child sexual abuse materials. It was one of the major recipients of ransomware proceeds. 

Not only this, Binance ultimately failed the anti-money laundering program including not meeting the basic Know-your-Customer (KYC) to its accounts which involved various suspicious transactions. 

There was a case was filed against Binance and the Binance Founder Changpeng Zhao who is always referred shortly as CZ stepped down in November last year from Binance CEO Post.  In his place, Richard Teng, the Former Global Head of Regional Markets was appointed as CEO in November last year.

Binance has agreed its failure. It is now come into the news that a trial room agreement has been made. Accordingly, Binance agree to pay a criminal fine of $ 1.8 billion, which totals to a financial penalty of $4.3 billion. As per this agreement, it is also mandated to have a compliance monitoring for three years by an independent firm. 

Besides this Binance also agreed for $1.8 billion to CFTC, FinCEN and OFAC settlements. 

It is widely expected that CZ would be sentenced soon for a imprisonment for atleast 18 months according to the provisions of the law. 

But the lawyers would argue for further term sentences for CZ. 

While it was expected the sentencing for CZ on February 23, 2024, The criminal sentencing of Binance and its founder CZ on this violation on the money laundering rule charge has now been postponed to April 30,2024 in Seattle federal court.

At present, he was released on a $175 million bond by Court in November 2023. 

But this agreement settlements would make Binance to rebuild the confidence among the traders, stakeholders in the crypto space.