CFTC imposes heavy fines on Binance and CZ

$2.85 billion: This is what Binance and founder CZ must pay to the CFTC to right their past wrongs.

Binance and founder Changpeng Zhao must pay a fine to the Commodity Futures Trading Commission (CFTC). The U.S. authority announced this recently in a press release. The parties involved must remit a total of US$2.85 billion to the CFTC. The crypto exchange will have to pay most of it, settling for US$2.7 billion. The remaining US$150 million will come from Binance founder Changpeng Zhao.

The fine is part of a larger settlement which Binance had previously struck with the U.S. justice. The deal was worth $4.3 billion. In March 2023, the CFTC sued the crypto exchange, paving the way for further legal action against Binance. Misleading regulators and a lack of mechanisms against money laundering and terrorist financing were just some of the allegations.

Binance and CZ not yet fully redeemed

The fine has now put an end to these proceedings. However, another is still in progress, namely the Securities and Exchange Commission lawsuit. And the fate of founder CZ is not quite decided either. The crypto tycoon faces a prison sentence of up to 18 months in the US.