[NEWS] US CFTC settles with Binance, imposing fine of approximately 380 billion yen

On the 18th, the Commodity Futures Commission (CFTC) announced that it had reached a settlement with cryptocurrency exchange Binance.

The U.S. District Court for the Northern District of Illinois found that Binance and its former CEO and founder, CZ (Changpeng Zhao), violated the U.S. Commodity Exchange Act.

The court imposed a fine of $1.35 billion on Binance and ordered it to collect the same amount in trading fees. It also imposed a fine of $150 million on CZ.

According to the consent order signed by Judge Manish S. Shah, Binance, under CZ's direction, actively solicited and had U.S. customers trade derivatives directly on its exchange platform, and the company was aware of U.S. regulations but ignored and willfully concealed them.

In addition, it points out that Binance allowed at least two prime brokers to open "sub-accounts" that were not subject to Binance's Know Your Customer (KYC) procedures, allowing U.S. clients to trade derivatives directly.

The suit seeks a $1.5 million fine from Binance's former Chief Compliance Officer Samuel Lim for engaging in activities outside the U.S. to aid, abet, or intentionally circumvent Binance's violations.

As part of the settlement, the suit also requires Binance to certify the improvement, application, and effectiveness of its compliance controls.

Settlement with the Treasury Department in November

Binance settled with the U.S. Treasury Department in November. It pleaded guilty to anti-money laundering violations and agreed to pay a $4.3 billion fine. CZ also agreed to pay a personal $50 million fine and resigned as CEO.

At the time, Binance said the resolution "acknowledges the company's responsibility for past criminal compliance violations and allows the company to turn the page."

Reference:Announcement
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