U.S. Court Approves Settlement in Binance Case with $150 Million Fine for CEO and $2.7 Billion Penalty for Binance

The U.S. District Court for Northern Illinois has ruled on the case involving Binance, the largest cryptocurrency exchange. The court has approved a settlement that concludes the enforcement action initiated by the Commodity Futures Trading Commission (CFTC) in November.

As part of the settlement, the former CEO of Binance, Changpeng Zhao, will pay a fine of $150 million, while Binance itself will pay a penalty of $2.7 billion. The court found that both Zhao and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations. In addition to the fines, Binance is required to disgorge $1.35 billion of ill-gotten transaction fees and pay an additional $1.35 billion penalty to the CFTC.

This approved settlement agreement signifies the resolution of the legal dispute between the regulatory authorities and the cryptocurrency trading platform. The CFTC had filed charges against Binance and Zhao in March 2023, accusing them of evading federal law and operating an illegal derivatives exchange.

As part of a broader settlement reached on November 21, Zhao agreed to step down as the CEO of Binance. This settlement involved not only the CFTC but also the U.S. Department of Justice and the Treasury Department. On the same day, Zhao pleaded guilty to several civil charges and one criminal charge related to anti-money laundering laws. He could face a maximum prison sentence of 18 months for the money laundering charge and has agreed not to appeal any potential sentence of that length.