Court Approves $2.7 bn Binance-CFTC Settlement
A US court has approved a settlement between Binance and the Commodity Futures Trading Commission (CFTC), stating that the exchange and its former CEO, Changpeng Zhao, violated the Commodity Exchange Act and other CFTC regulations.
The settlement requires Binance to pay a $1.35 billion fine to the CFTC, along with $1.35 billion in “ill-gotten transaction fees.” Zhao also faces a $150 million fine. The CFTC found that Binance actively solicited US customers and concealed their presence on the platform, allowing them to evade compliance controls.
Binance has been required to offboard trading firms identified by the CFTC and implement a corporate governance structure with a board of directors and compliance and audit committees.
The settlement is part of a wider settlement with US regulators that requires Binance to “completely exit” the country, with Zhao stepping down as CEO after pleading guilty to anti-money laundering violations.
(With inputs from Shikha Singh)
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