DOJ Urges Crypto Firms To Follow Rules Following Binance’s Guilty Plea

In a recent announcement from the US Department of Justice (DOJ), Janet Yellen asked virtual currency firms to operate within the law after DoJ-sanctioned Binance.

More like a warning, Yellen highlighted the need for compliance in the virtual currency industry, noting that compliance is required to reap the benefits of affiliation in the US financial system. The announcement came shortly after the DOJ convicted Binance guilty of money laundering and many other charges.

DoJ Imposed $4.37 Billion Penalties On Binance

On Tuesday, 21 November 2023, the U.S. Treasury, involving FinCEN, OFAC, and IRS Criminal Investigation, imposed a record $4.37 billion penalty on Binance. The penalty settlement is ordered to be paid within 15 months of the period. This action targets the global giant, the largest virtual currency exchange, for severe breaches of anti-money laundering (AML) and sanctions regulations.

Binance, responsible for 60% of global virtual currency spot trading, admitted willful failure to implement an effective AML program, including Know Your Customer procedures, and to report suspicious transactions.

Binance CEO Changpeng Zhao has reportedly announced his departure from the CEO post and was in custody.

According to the report, CZ secured his release from custody by paying a substantial bail amount, reaching up to $175 million.

Also Read: US Justice Department Seizes $9 Million in Tether in Major Scam Crackdown

Binance CZ Stepped Down as Binance’s CEO

Binance CEO Changpeng Zhao has resigned and pleaded guilty to violating U.S. anti-money laundering laws, marking the resolution of a lengthy investigation into the world’s largest cryptocurrency exchange.

Prosecutors revealed on Tuesday that the $4.3 billion settlement, one of the largest corporate penalties in U.S. history, includes Zhao personally paying $50 million.

In an X post, CZ announced his resignation as Binance’s CEO and left an emotional message for everyone. Accepting all the allegations, Zhao confessed that he made mistakes and he was solely responsible for the cause. Admitting his faults, he found the decision best for the exchange community.

According to Zhao’s statement, Binance’s executive Richard Teng will take charge from now on.

Teng added that he would concentrate on reassuring users that they can remain confident in the financial strength, security, and safety of the company.

As the news spread. the broader crypto market felt jolts on Wednesday after the DOJ confirmed the charges on Binance. Bitcoin, Ethereum, and other cryptos saw a decline of 3%-4%. On the other hand, Binance’s native crypto BNB fell more than 12%.