Binance’s Big Exit: Billions to FinCEN, OFAC, and DOJ in the Bag!

"Binance to Depart U.S. Market, Settles with FinCEN and OFAC, Paying Billions in Fines and Accepting Five-Year Monitoring"

Binance, the popular cryptocurrency exchange, has agreed to pay billions of dollars in fines and appoint a monitor for five years as part of a settlement with the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Asset Control (OFAC), two regulatory bodies within the U.S. Treasury Department. The press releases, shared on Tuesday, reveal that Binance will pay $3.4 billion to FinCEN and $968 million to OFAC to resolve accusations of violating the Bank Secrecy Act and sanctions programs.

Additionally, Binance had previously announced its agreement to pay $4.3 billion to the U.S. Department of Justice to settle charges related to sanctions violations and the lack of a proper know-your-customer program. As part of this settlement, Changpeng “CZ” Zhao, the founder and CEO of Binance, will step down from his position. Furthermore, Binance will completely withdraw from the U.S. market as part of the settlement with FinCEN and appoint a monitor for the next five years to ensure compliance with sanctions regulations. During this period, the U.S. Treasury Department will have access to Binance’s records and systems.

According to Treasury Secretary Janet Yellen, this settlement marks the largest in the department’s history. A senior official emphasized the significance of the monitorship, stating, “We’re not just going after the egregious conduct… but we’re also… getting Binance out of the U.S. entirely.” It is worth noting that the settlement does not affect Binance.US, the registered money services business and U.S. affiliate of Binance, which will continue to operate independently.

The allegations against Binance include enabling individuals associated with terrorist organizations such as Hamas and the Islamic State of Iraq and Syria, as well as those in sanctioned jurisdictions like North Korea, to use its platform. The exchange has also been accused of facilitating money laundering and providing a platform for malicious cybersecurity actors.

In an update to the news, Janet Yellen, the Treasury Secretary, expressed her thoughts on the settlement, highlighting its significance in combating illicit activities. The article was edited by Nick Baker.

Martin Reid

Martin Reid

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