Binance, the world’s largest cryptocurrency exchange, and its CEO, Changpeng Zhao, have been ordered by a US court to pay a significant fine for violating anti-money laundering (AML) regulations. The Northern District Court of Illinois ruled on Monday that Zhao is personally liable for $150 million, while Binance faces a total of $2.7 billion in fines.
The breakdown of the fines includes the forfeiture of $1.35 billion in trading fees collected by the exchange, with an additional equivalent amount as a penalty. This regulatory action marks a significant development in the ongoing oversight of cryptocurrency exchanges by regulators.
Previously, Zhao pleaded guilty to AML violations and resigned as CEO of Binance. In light of these events, Binance admitted to past compliance failures and agreed to a settlement with US authorities. The settlement also includes the handling of previously unreported suspicious activities involving more than 100,000 transactions.
As part of the court ruling, Binance is now required to significantly strengthen its compliance measures. Exchanges must implement strict Know Your Customer (KYC) policies and other controls to prevent future breaches and ensure compliance with AML laws and regulations.
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