Binance's Legal Drama Unveiled: A $2.85 Billion Rollercoaster
Here's a recent courtroom showdown starring Binance, the crypto giant, and its former CEO, Changpeng Zhao, aka CZ. Hold on tight; this rollercoaster comes with a hefty $2.85 billion twist!
Picture this — a courtroom clash between the Commodity Futures Trading Commission (CFTC) and the crypto powerhouse Binance, led by CZ. The judge, Manish Shah, throws a bombshell on December 18 — a mind-boggling $2.85 billion settlement. CZ isn't spared; he takes a personal hit of $150 million, and Binance has to return $1.35 billion in ill-gotten fees while also coughing up an additional $1.35 billion as a penalty to the CFTC.
Let's rewind to November when the CFTC landed the first blow, accusing Binance and CZ of bending the rules. The court reveals the plot — Binance, under CZ's guidance, actively lured in U.S. customers, breaking the Commodity Exchange Act. And the plot thickens — Binance let two prime brokers slip past the KYC procedures, allowing U.S. customers to trade directly, breaking all compliance rules. Quite the naughty move!
The kicker? Despite knowing the U.S. rules, CZ and Binance turned a blind eye and even advised U.S. customers to dodge compliance checks.
Fast forward, and the legal showdown reaches its climax. CZ stuns everyone by stepping down from the Binance throne. Enter Richard Teng, a new era begins.
The verdict is in — Binance foots a jaw-dropping $2.85 billion bill, marking one of the largest penalties in crypto history. But hold on, there's a twist. On December 7, CZ gets another shocker — he has to stick around in the U.S. until February 23, 2024, for his sentencing. Money laundering charges hang over him, facing a possible 18 months behind bars, no appeals allowed.
And so, the Binance legal saga concludes with a hefty bill, a change in leadership, and CZ facing the music. The crypto world, where surprises never end!