Judge approves Binance US$4.3 billion guilty plea as US seeks to modify founder Zhao's bond

A US judge on Friday (Feb 23) accepted Binance's guilty plea and more than US$4.3 billion penalty for violating federal anti-money laundering and sanctions laws through lapses in internal controls at the world's largest cryptocurrency exchange.

US District Judge Richard Jones in Seattle approved the plea, which includes a US$1.81 billion criminal fine and US$2.51 billion of forfeiture, about an hour after the government proposed changes to Binance founder Zhao Changpeng's bond, drawing an objection from Zhao's lawyers.

Binance's plea announced in November resolved a years-long probe that found the exchange had failed to report more than 100,000 suspicious transactions involving designated terrorist groups including Hamas, al Qaeda and the Islamic State of Iraq and Syria, or ISIS.

Prosecutors said Binance's platform also supported the sale of child sexual abuse materials and was among the largest recipients of ransomware proceeds.

In a statement on Friday, Binance said it accepted responsibility, has upgraded its anti-money laundering and "know-your-customer" protocols, and has made "significant progress" toward changes required under its plea agreement.

Zhao has been free in the United States on a US$175 million bond after also pleading guilty in November to money-laundering violations.

His plea included a US$50 million fine and required that he step down as Binance chief executive.

In a court filing, prosecutors said the proposed bond changes were meant to reflect Jones' orders that Zhao stay in the continental United States and under court officer supervision until his Apr 30 sentencing.

The conditions include that Zhao provide three days' notice of any travel plans, surrender his passports and maintain his current residence