© Reuters.
In a landmark case, Binance, one of the world’s largest cryptocurrency exchanges, and former CEO Changpeng Zhao have settled charges with the Commodity Futures Trading Commission (CFTC). for a total of $2.7 billion. The federal court approved the settlement due to Binance’s violations of the Commodity Exchange Act, including operating as an unregistered futures commission trader and participating in digital asset derivatives exchanges illegal.
Under the settlement terms, Binance is required to deduct $1.35 billion in trading fees it earned while carrying out unregistered activities. Additionally, the court imposed an equivalent fine on the company, bringing its total financial obligations to $2.7 billion. Changpeng Zhao, who led Binance during this violation, was personally fined $150 million.
Following the court’s decision, Changpeng Zhao resigned as CEO of Binance. His resignation comes amid ongoing criminal charges, signaling a significant change in leadership for the cryptocurrency exchange.
This resolution represents one of the most consequential enforcement actions taken against a cryptocurrency exchange to date and could set a precedent for future cases.
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