Binance settled with the US Department of Treasury after enabling transactions with terrorist organizations including Hamas, Al Qaeda, and the Islamic State of Iraq and Syria (ISIS). CEO and founder Changpeng “CZ” Zhao also pleaded guilty to criminal charges.
“Binance enabled a range of illicit actors to transact freely on the platform,” the Treasury Department declared in a statement. The settlement comes as the Israeli-Palestinian conflict reaches new extremes, sparked by Hamas terror attacks in October that killed over 1,200 people and took hundreds hostage.
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US Attorney General slams Binance
US Attorney General Merrick Garland slammed Zhao and Binance for failing to fulfill their legal duties to monitor and report dubious transactions. “This will advance our criminal investigations into malicious cyber activity and terrorism fundraising, including the use of cryptocurrency exchanges to support groups such as Hamas,” vowed Garland.
As a consequence of the settlement, Binance will be required to pay substantial fines, with a portion allocated to different agencies. The Financial Crimes Enforcement Network (FinCEN) is set to receive $3.4 billion, marking the largest fine in the bureau’s history.
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Additionally, the Office of Foreign Assets Control (OFAC) will be allocated $968 million. In addition, these fines aim to hold Binance accountable for its alleged negligence in preventing illicit transactions, emphasizing the gravity of the accusations.
US Attorney General Merrick Garland, in a press conference, highlighted that Zhao’s guilty plea and Binance’s settlement would enhance criminal investigations into cyber activities and terrorism fundraising, particularly the use of cryptocurrency exchanges for such purposes.
As part of the settlement, Binance is obligated to report suspicious transactions related to terrorism in the future and conduct a thorough review of past activities that should have been disclosed.