Cryptocurrency exchange Binance has reached a settlement deal worth $2.7 billion with the Commodity Futures Trading Commission (CFTC). The settlement is over allegations that the company allowed illegal cryptocurrency trades and failed to properly implement anti-money laundering measures.
The settlement was approved by a federal judge in December and requires Binance to pay a $1.35 billion civil penalty along with disbursing $1.35 billion in allegedly ill-gotten trading fees earned from U.S. customers.
Changpeng Zhao, Binance’s founder and former CEO, will also personally pay $150 million as part of the agreement.
Also read: Dogecoin Founder Had Another Crypto Project Before 2014; What Happened to It?
Binance had a tough November
The settlement follows an investigation that found that Binance had actively solicited business from U.S.-based traders despite being aware that its cryptocurrency offerings violated regulations enforced by the CFTC.
“Binance, at Zhao’s direction, actively solicited customers in the United States, including quantitative trading firms, who entered into digital asset derivative transactions directly on the Binance platform,” the agency said in a statement.
As part of the consent order, Binance has committed to making substantial changes to its corporate governance policies, including establishing an independent board of directors.
Also read: Trader Turns $226K into $1.69M in 5 Days with This Solana Meme Coin – Here’s How
Last month, federal agencies, including the Department of Justice, announced they had collectively reached a $4.3 billion settlement over criminal charges against Binance related to anti-money laundering and sanctions violations.
Following the investigation, Zhao stepped down from his role as CEO of Binance and resigned last week as chairman of Binance.US, the company’s U.S.-based trading platform.
While Zhao retains a financial stake in Binance, he no longer has any leadership or governance role at Binance.US which operates independently from the global exchange.