{"id":2104903,"date":"2023-11-21T13:39:09","date_gmt":"2023-11-21T18:39:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/crypto-giant-binance-founder-to-plead-guilty-to-violating-money-laundering-law-report\/"},"modified":"2023-11-21T13:42:39","modified_gmt":"2023-11-21T18:42:39","slug":"crypto-giant-binance-founder-to-plead-guilty-to-violating-money-laundering-law-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/crypto-giant-binance-founder-to-plead-guilty-to-violating-money-laundering-law-report\/","title":{"rendered":"Crypto giant Binance founder to plead guilty to violating money-laundering law: Report"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcrypto-giant-binance-founder-to-plead-guilty-to-violating-money-laundering-law-report%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2104903&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Binance\u2063 CEO Changpeng Zhao to Resign and Plead Guilty in Major Deal with U.S. \u2062Government<\/h2>\n<p>In a groundbreaking development, Binance founder \u200dand CEO Changpeng Zhao is set to step down from his position and admit to \u2062violating\u2064 criminal law as \u200cpart of a deal struck with the U.S. government. This\u2063 news comes alongside reports\u200b that Binance, the world&#8217;s largest cryptocurrency exchange, has agreed to pay over $4 \u2062billion \u2062in fines to settle civil allegations made by federal regulators.<\/p>\n<p>The\u2062 U.S. Treasury Department has scheduled a press conference to\u2062 announce a significant \u200denforcement action against illicit finance.\u2063 It\u200d is\u2064 highly likely that this conference will address Zhao&#8217;s reported resignation and guilty plea.<\/p>\n<p>This move holds immense significance for Binance as it is expected to bring an end to the long-standing federal investigations into the\u2064 exchange. \u2063Under the terms of the agreement, Zhao will retain majority ownership of the company but will be prohibited from holding an executive position.<\/p>\n<h3>SEC Lawsuit and Allegations<\/h3>\n<p>As recently as June, the Securities and Exchange Commission (SEC) filed \u200da lawsuit against Binance and Zhao, \u2063accusing them\u2063 of deceiving federal \u200bregulators and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/beleaguered-crypto-billionaire-was-hobnobbing-at-white-house-just-six-months-ago\/\" title=\"Beleaguered Crypto Billionaire Was Hobnobbing at White House Just Six Months Ago\">mishandling customer funds<\/a>. The SEC alleged that Binance had \u2064covertly redirected customer\u200c funds to another trading entity controlled by Zhao, engaging in fraudulent trading to inflate\u200b the \u2062exchange&#8217;s volume. This blatant disregard for federal securities law, according to the complaint, resulted\u200c in substantial profits for the defendants while jeopardizing investors&#8217; assets.<\/p>\n<p>In addition to the SEC\u2064 lawsuit, the Commodity Futures Trading Commission (CFTC) also sued Binance and Zhao for \u2062alleged violations of U.S. regulatory\u200b law, labeling the firm&#8217;s compliance efforts as a &#8220;sham.&#8221; Furthermore, \u200dthe Justice Department investigation into Binance examined whether the exchange&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/crypto-giant-binance-founder-to-plead-guilty-to-violating-money-laundering-law-report\/\" title=\"Crypto giant Binance founder to plead guilty to violating money-laundering law: Report\">anti-money-laundering department facilitated trades<\/a> between\u200d individuals in U.S.-sanctioned countries and Americans using the platform.<\/p>\n<p>The CFTC had\u200d previously accused Binance of lacking a robust program to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-slams-impeachment-inquiry-as-shutdown-looms-nothing-can-distract-from-that\/\" title=\"White House criticizes impeachment inquiry amidst looming shutdown: 'No distractions allowed'\">detect money\u200d laundering<\/a> and the financing of terrorism.<\/p>\n<h3>Market\u2063 Impact<\/h3>\n<p>Following the\u200d news of Zhao&#8217;s deal with the U.S. government, the\u200d price of bitcoin\u200d experienced a slight decline. Despite\u2064 showing gains earlier in the day, the value of a bitcoin dropped over 2% to just below $36,800. Simultaneously, Binance Coin (BNB), the exchange&#8217;s cryptocurrency token, witnessed\u2064 an immediate decrease of nearly 9%, trading at $238 per coin.<\/p>\n<p>Overall, this development marks a significant \u200dturning point for Binance and the cryptocurrency industry as a whole, as it brings closure to ongoing investigations and\u200c sets the stage for potential reforms and increased regulatory scrutiny.<\/p>\n<p> <\/p>\n<h2> How has the U.S. government&#8217;s monitoring of Binance&#8217;s compliance \u2062with AML and KYC regulations \u2064impacted its activities?<\/h2>\n<p><span>  Stigation into the exchange&#8217;s activities. The U.S. government has been monitoring Binance for several years, scrutinizing its\u200c compliance with \u2063<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lawmakers-introducing-legislation-targeting-enablers-of-international-corruption-after-pandora-papers-findings\/\" title=\"Lawmakers Introducing Legislation Targeting Enablers of International Corruption After Pandora Papers Findings\">anti-money laundering<\/a> (AML) and know-your-customer (KYC) regulations.<\/p>\n<p>The decision by Changpeng Zhao to resign and plead guilty will undoubtedly have wide-reaching\u2064 implications for Binance\u200b and the broader cryptocurrency industry. As one \u2062of the most prominent figures in the crypto world, Zhao&#8217;s departure will undoubtedly send shockwaves through the community.<\/p>\n<p>The exact details of the charges against\u200d Zhao\u2063 are yet to be revealed, but it is speculated that they are related\u200c to the exchange&#8217;s alleged failure to \u200cimplement adequate AML and KYC measures. Binance has faced criticism in \u2064the past for its lax approach to these regulatory\u200b requirements, with accusations that the platform facilitated \u200cmoney \u2063laundering and \u2063allowed for\u200b illicit\u200c activities to take place.<\/p>\n<p>By admitting guilt and agreeing to pay\u2062 substantial fines, Binance is attempting \u2063to mitigate the potential legal and reputational damage it could face. This move indicates a willingness on the part of the exchange to cooperate with authorities and demonstrate a \u2064commitment to improving its compliance practices.<\/p>\n<p>The \u200c$4 billion fine imposed on Binance is one of the largest penalties ever imposed on a cryptocurrency exchange. It serves as a stark reminder that regulators are increasingly focused \u200con bringing the \u2063crypto industry in line with traditional financial regulations. As the market continues to grow and attract more users, ensuring the integrity and security of these platforms becomes paramount.<\/p>\n<p>The implications of this development extend\u200d beyond Binance and could have far-reaching consequences for \u200cthe \u2062broader cryptocurrency ecosystem.\u200d It is \u2062likely to prompt other exchanges to reassess their compliance\u2062 protocols and take proactive steps to avoid similar scrutiny from \u2063regulators.<\/p>\n<p>Additionally, \u2064this \u2064case highlights the\u200c need for clearer regulations governing cryptocurrency \u2064exchanges. The lack of standardized rules and guidelines has made it challenging for regulators to effectively monitor and regulate the industry. As cryptocurrencies become more\u200c integrated\u2062 into the mainstream financial system, regulatory frameworks need to evolve to address the \u2064unique challenges presented by this emerging asset class.<\/p>\n<p>In conclusion, Changpeng Zhao&#8217;s resignation and guilty plea, \u2064along with Binance&#8217;s agreement to pay significant\u2064 fines, mark a turning point for the cryptocurrency\u200d industry. The move demonstrates a growing recognition among market participants and regulators \u2064that compliance and regulation are\u200b crucial for the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/social-security-update-second-round-of-direct-payments-worth-up-to-4555-to-arrive-in-two-days\/\" title=\"New Social Security update: ,555 direct payments coming in 48 hours.\">long-term \u2062viability<\/a> of \u2063the sector. It is now up to both \u200bindustry leaders and regulators to work \u200ctogether to\u200d establish clear rules and guidelines that foster innovation while ensuring \u2063the integrity of the market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Binance CEO Changpeng Zhao is said to be stepping down and admitting guilt for breaking the law in a settlement with the US government. As part of the deal, Zhao will plead guilty to violating anti-money laundering regulations. The Wall Street Journal revealed this news on Tuesday. Binance, the biggest crypto exchange globally, is also involved.<\/p>\n","protected":false},"author":1,"featured_media":2104904,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2104903","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2104903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2104903"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2104903\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2104904"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2104903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2104903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2104903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}