{"id":25414,"date":"2023-11-22T00:21:59","date_gmt":"2023-11-22T00:21:59","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/binance-settles-with-u-s-government-timeline-of-us-enforcement-actions\/"},"modified":"2023-11-22T00:22:01","modified_gmt":"2023-11-22T00:22:01","slug":"binance-settles-with-u-s-government-timeline-of-us-enforcement-actions","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/binance-settles-with-u-s-government-timeline-of-us-enforcement-actions\/","title":{"rendered":"Binance settles with U.S. government: Timeline of US enforcement actions"},"content":{"rendered":"
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Binance and its founder Changpeng”CZ” Zhao has admitted to violating United States laws around money laundering and terror financing \u2014 agreeing to pay $4.3 billion in fines. <\/p>\n

The Justice Department’s probe into Binance started years earlier, and in the meantime, other U.S. regulatory agencies launched their own actions against the crypto exchange.<\/p>\n

Here’s what happened.<\/p>\n

Feb. 15: Binance was under suspicion since 2018<\/h2>\n

Reports emerged that Binance is the target of several United States law enforcement investigations \u2014 some dating back to 2018. <\/p>\n

March 1: Congress involved \u2014 Elizabeth Warren leads the charge<\/h2>\n

Binance came under\u00a0U.S. Congress scrutiny on March 1 as Senators Elizabeth Warren, Chris Van Hollen and Roger Marshall sent a letter to Binance CEO Changpeng \u201cCZ\u201d Zhao and Binance.US CEO Brian Shroder requesting answers to several allegations and the companies\u2019 balance sheets. The Senators were not satisfied with the responses and the executives were later accused of lying.<\/p>\n

Sen. Warren and company’s letter to CZ. Source: Office of Sen. Elizabeth Warren<\/em><\/figcaption><\/figure>\n

March 27: CFTC strikes with 7 charges<\/h2>\n

The Commodity Futures Trading Commission (CFTC) filed suit against Zhao, chief compliance officer Samuel Lim and Binance, naming seven counts of trading irregularities and market manipulation. The CFTC investigation reportedly began in 2021. Zhao vehemently denied the charges.<\/p>\n

May 5: DOJ also has eyes on Binance<\/h2>\n

Bloomberg reported that Binance is under investigation by the Justice Department for violations of sanctions against Russia. Binance maintained a presence in Russia through September. <\/p>\n

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The Justice Department is investigating whether Binance was used illegally to let Russians skirt US sanctions and move money through the world\u2019s biggest cryptocurrency exchange https:\/\/t.co\/AVgG55iSmx<\/p>\n

\u2014 Bloomberg Crypto (@crypto) May 5, 2023<\/a><\/p><\/blockquote>\n

June 5: SEC strikes with 13 charges<\/h2>\n

The Securities and Exchange Commission filed suit against Binance, Binance.US and Zhao on June 5 with 13 charges, including unregistered securities sales, allowing U.S. customers to use the Binance exchange, intermingling customer and corporate funds and wash sales. <\/p>\n

The SEC suit against Binance, Binance.US and CZ. Source: Court Listener<\/figcaption><\/figure>\n

The SEC got an emergency restraining order against Binance.US and the exchange drastically cut back its U.S. activities. <\/p>\n

July 6: Binance leadership exodus starts<\/h2>\n

Four senior members of the Binance.US team left the company, starting a wave of departures that continued for months. <\/p>\n

Aug. 2: DOJ mulls move on Binance<\/h2>\n

The Justice Department was reported to be considering fraud charges against Binance. To avoid a run on the exchange, the department was leaning toward fines or non-prosecution agreements at that time.<\/p>\n

Aug. 14: Binance.US scrambles to block SEC<\/h2>\n

Binance.US sought a protective order against the SEC, accusing the SEC of launching a \u201cfishing expedition\u201d in its discovery process. Binance insisted it was acting in good faith in the process.<\/p>\n

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Binance is seeking a protective order against the SEC, claiming that they are conducting a “fishing expedition”.https:\/\/t.co\/NquMV8ShNK<\/p>\n

\u2014 Molly White (@molly0xFFF) August 15, 2023<\/a><\/p><\/blockquote>\n

Sept. 13-14: Binance.US cuts staff, CEO quits and SEC responds<\/h2>\n

Binance.US laid off a third of its workforce \u2014 about 100 people and its CEO Brian Shroder also departed. The SEC complained to the court about a lack of cooperation from Binance in its discovery process. <\/p>\n

Sept. 19: Binance.US notches minor win against SEC<\/h2>\n

Binance.US scored a minor victory when the court denied the SEC access to the exchange\u2019s software. Instead, the judge suggested that the SEC should be more specific in its discovery requests.<\/p>\n

Sept. 21: Binance wants SEC suit tossed<\/h2>\n

Zhao, Binance and Binance.US asked the court to dismiss the SEC case against them. They claimed the SEC misinterpreted securities law and was imposing its authority retroactively. The SEC retorted that Binance had a \u201ctortured interpretation of the law.\u201d<\/p>\n

Oct. 23: Binance wants CFTC suit tossed<\/h2>\n

Binance filed a motion to dismiss the CFTC\u2019s suit. If the CFTC prevailed, it \u201cwould allow it to regulate any activity in cryptocurrency […] related to a derivatives product\u201d worldwide, Binance said. \u201cCongress did not make the CFTC the world\u2019s derivatives police, and the Court should reject the agency\u2019s effort to expand its territorial reach beyond what is permitted by the law,\u201d the exchange added.<\/p>\n

Oct. 26: CZ\u2019s wealth drops, Congress wants DOJ to strike<\/h2>\n

The Bloomberg Billionaires Index dropped Zhao from 11th place among the richest people in the world to a somewhat more modest 95th. His personal wealth was said to have been reduced from $96.9 billion to $17.3 billion. His standing had risen to 68th place in the November list, however.<\/p>\n

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CZ in 68th place on the November Bloomberg Billionaires Index. Source: Bloomberg<\/em><\/figcaption><\/figure>\n

The same day, Senator Cynthia Lummis and Representative French Hill called on the Justice Department to move against Binance and Tether for enabling sanctions evasion. This was two weeks after Binance froze accounts linked to Hamas. <\/p>\n

Nov. 21: CZ and Binance indicted<\/h2>\n

The government filed indictments against Binance and Zhao in Washington state on Nov. 14. The documents were unsealed on Nov. 21. Zhao steps away from Binance as part of the deal.<\/p>\n

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Nov. 14 charges against Binance, unsealed Nov. 21. Source: CourtListener<\/em><\/figcaption><\/figure>\n

Penalties totaled over $4 billion, including fines imposed on Zhao and Lim personally.<\/p>\n

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We\u2019re pleased to share we\u2019ve reached resolution with several US agencies related to their investigations.<\/p>\n

This allows us to turn the page on a challenging yet transformative chapter of learning that has helped us become stronger, safer, and an even more secure platform.<\/p>\n

\u2014 Binance (@binance) November 21, 2023<\/a><\/p><\/blockquote>\n

Magazine: How to protect your crypto in a volatile market \u2014 Bitcoin OGs and experts weigh in<\/em><\/strong><\/p>\n