- The US prosecutors urge the court to accept Binance’s $4.3 billion plea deal.
- In a sentencing memo, the prosecutors argued that Binance’s misconduct posed a serious threat to the financial economy.
- The prosecutors added the exchange’s law breach, led by chief executives, was intentional.
According to a recent Bloomberg report, the US prosecutors urged the court to accept Binance’s $4.3 billion plea deal, arguing that the exchange’s violation of the economic sanctions laws posed a serious threat to the nation’s financial sector.
On February 16, the US prosecutors filed a sentencing memo in federal court in Seattle, claiming that the Binance’s “misconduct” was “intentional.” The prosecutors stated that Binance’s serious misconduct, led by senior executives, resulted in “hundreds of millions of dollars of collateral consequences.”
Binance’s long legal struggle could be traced back to the Securities and Exchange Commission’s (SEC) lawsuit filed in June 2023. The lawsuit imposed 13 charges against the exchange, including the violation of federal securities law by offering unregistered securities.
Reflecting on the charges, the prosecutors asserted that Binance’s refusal to register the company as a money services business and implement an anti-money laundering program left “Binance, its customers, and the US financial system vulnerable to those who seek to exploit our system for their own gain.”
In response to the SEC’s allegations, Binance attempted to dismiss the lawsuit multiple times. Despite receiving a positive response from the crypto community, Binance finally pleaded guilty. On November 21, Binance founder Changpeng Zhao resigned from the position of the company CEO. While Zhao agreed to pay a personal penalty of $50 million, the company agreed to a $4.3 billion penalty deal. The deal also included the monitoring of Binance for up to 5 years.
Following the postponement of Zhao’s criminal sentencing until late April, the US prosecutors, in the recent filing, argued strongly against Binance. According to their statement, Binance’s law breach has significantly impacted the country’s financial economy.
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Source: https://coinedition.com/prosecutors-urge-court-to-accept-binances-4-3-billion-plea-deal/