The U.S. Attorney’s Office for the Western District of Washington raked in a record $1.51 billion in fines for 2024, with global crypto exchange Binance coughing up $1.5 billion of that—a hefty price tag for one of the district's biggest legal payouts.
The large sum is part of an even larger $4.3 billion penalty imposed on Binance for major infractions including failing to register as a money transmitting business and violating U.S. sanctions.
The district worked with the Criminal Division’s Money Laundering and Asset Recovery Section and the National Security Division to ensure that the company was held accountable for its actions, according to the Wednesday statement.
Binance Must 'Completely Exit' From US as It Settles Years-Long Criminal Investigation
Binance will exit the U.S. market and pay $4.3 billion—one of the largest corporate penalties in U.S. history—to settle anti-money laundering and sanctions violations, the Department of Justice today said. The exit and penalty are the result of a years-long criminal investigation into the company and its leadership. CEO Changpeng Zhao has also stepped down after pleading guilty to anti-money laundering violations and agreed to pay a separate $50 million fine. The settlement also prohibits Zhao f...
"Our office worked closely with Department of Justice components on the criminal case against Binance," U.S. Attorney Tessa M. Gorman said.
As part of the settlement, Binance agreed to exit the U.S. market completely, and its co-founder CEO Changpeng Zhao, known as “CZ,” stepped down from the company.
Zhao also agreed to personally pay a $50 million fine and is prohibited from having any future involvement in the company for at least three years.
In addition to the financial penalties, Zhao was sentenced to four months in prison for his role in the violations—another blow to his leadership in the company.
Binance Founder Changpeng Zhao Sentenced to 4 Months in Prison for Money Laundering Violations
Former Binance CEO Changpeng "CZ" Zhao was sentenced to four months in prison Tuesday, punished after pleading guilty to money laundering violations last year. Changpeng Zhao "had the personnel, resources, and wherewithal to comply with U.S. regulations,” U.S. District Judge Richard Jones said in Seattle while delivering Zhao’s sentence. “But failed at that opportunity." Jones also cited a statement from Zhao that said “it was better to ask forgiveness than permission," with the judge that he wa...
The attorney’s office also collected $8.8 million in civil actions and $3.8 million in criminal restitution, including payments from a coffee stand owner who paid $96,000 for tax underreporting and a restaurant owner who settled a $500,000 tax fraud case.
Civil collections included $217,000 from the sale of Dr. Frank Li's medical office and $1.23 million from Yakima Products for unpaid duties on imported aluminum.
The district also secured $2.86 million from asset forfeitures, which will be used to compensate crime victims and support law enforcement efforts.
Binance and SEC Seek 60-Day Legal Pause
Meanwhile, Binance and the U.S. Securities and Exchange Commission (SEC) under acting chair Mark Uyeda have jointly requested a 60-day pause in their ongoing legal dispute.
The pause comes after the SEC launched a crypto task force, which both parties hope will help clarify regulatory frameworks and potentially resolve the case.
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SEC Commissioner Hester Peirce, who long ago earned the nickname "Crypto Mom," has laid out how the watchdog will regulate the digital asset industry with its new crypto task force—and did so in a letter that blasted the previous administration's approach. Peirce, who was announced as the new task force's boss last month, wrote Tuesday that the SEC would take a while to get on track and regulate a fast-moving and arcane industry. "It took us a long time to get into this mess, and it is going to...
If approved, the pause would delay motions, including Binance's request to dismiss the SEC’s lawsuit accusing the exchange of violating securities rules.
Compounding its troubles, Binance is also facing a probe in France for money laundering and fraud.
Edited by Stacy Elliott.
