US prosecutors have called for stricter oversight of the Binance cryptocurrency exchange, proposing up to five years of supervision.
This follows Binance’s previous admission of non-compliance with US anti-money laundering laws and sanctions obligations, for which it agreed to a hefty fine that could reach $4.3 billion.
According to Bloomberg reportaccountability measures are included in a sentencing memorandum filed by prosecutors with a federal judge in Seattle to ensure future compliance with legal standards for Binance in particular and the broader cryptocurrency industry.
Because the cryptocurrency exchange admitted to facilitating transactions for authorized terrorist organizations such as Hamas, the seriousness of the breach led U.S. prosecutors to seek harsh retaliation, including large fines and extended surveillance periods of up to five years. There is.
During these proceedings, prosecutors revealed significant gaps in Binance’s compliance structure, revealing a lack of registration as a money services business, a key requirement for platforms that conduct currency trading and exchange. I made it.
Additionally, prosecutors said the exchange’s inadequate anti-money laundering programs leave the platform and the U.S. financial ecosystem open to potential abuse by bad actors.
Binance founder could face up to 18 months in prison
Binance’s former CEO, Qiao Changpeng, is currently awaiting sentencing after pleading guilty to anti-money laundering charges. In a twist of fate, in the same year that the charges against Mr. Zhao were filed, Mr. Zhao’s personal wealth increased astronomically by about $25 billion.
Sentencing was originally scheduled for February but was postponed to late April by Seattle federal court. There has been speculation about the delay and what it means for Mr. Zhao’s future, compounded by the silence of his lawyer, William Burke.
Under U.S. law, Zhao could be sentenced to up to 10 years in prison, but the prosecutor’s memorandum mentions a possible 18-month sentence.
Binance is currently under the leadership of new CEO Richard Teng and is at a critical juncture. The company’s mission is to renew trust between its customer base and regulators and prevent mass customer churn during this period of turmoil.
The outcome of compliance enforcement efforts always has implications for the broader cryptocurrency market.
The exchange’s native BNB token has largely remained profitable amid these developments.
According to data from crypto price tracking website CoinGecko, BNB has recorded significant gains over the last two weeks. In 7 days, the price of the coin increased by 10%, and in 14 days it repeated the same trick, recording a growth of 16.1%.
In the last 24 hours, the trading volume reached $741,625,299, an increase of a slight 0.6%.
