Cryptocurrency exchange, Binance, states it is ready to pay penalties that US regulators will charge for all past misconducts. This statement was made due to constant scrutiny by regulators following FTX's collapse.
The crypto exchange has also been under investigation by the US Attorney’s Office for the Western District of Washington since 2018. In the past few months, it has been reported that the Department of Justice (DOJ) has subpoenaed at least two trading firms, requesting records of their past dealings with Binance US.
Binance Chief Strategy Officer, Patrick Hillmann, stated the exchange’s growth was very rapid. Hence, it was unaware of many laws and regulations to prevent money laundering, corruption, and sanction evasion. However, Binance is ready to pay monetary penalties to make amends for past regulatory violations.
According to Hillmann’s statement to WSJ,
“Binance grew quickly and began as a business powered by software engineers, unfamiliar with laws and rules written to address the risk of bribery and corruption, money laundering, and economic sanctions. The company has been working to fill gaps in its early compliance efforts but still expects regulators will impose fines for past conduct.”
He also noted the outcome of the investigation was still uncertain. It could be a fine or something else, which is the regulators’ decision. However, Binance is working with them to correct its mistakes and put the past behind them.
In December, it was reported that federal authorities were in discussion with Binance for a potential settlement. However, the authorities were also contemplating if the evidence they gathered was enough to bring charges against Binance and some individuals, including the exchange’s CEO, Changpeng Zhao.
Cryptocurrency exchange, Binance, states it is ready to pay penalties that US regulators will charge for all past misconducts. This statement was made due to constant scrutiny by regulators following FTX's collapse.
The crypto exchange has also been under investigation by the US Attorney’s Office for the Western District of Washington since 2018. In the past few months, it has been reported that the Department of Justice (DOJ) has subpoenaed at least two trading firms, requesting records of their past dealings with Binance US.
Binance Chief Strategy Officer, Patrick Hillmann, stated the exchange’s growth was very rapid. Hence, it was unaware of many laws and regulations to prevent money laundering, corruption, and sanction evasion. However, Binance is ready to pay monetary penalties to make amends for past regulatory violations.
According to Hillmann’s statement to WSJ,
“Binance grew quickly and began as a business powered by software engineers, unfamiliar with laws and rules written to address the risk of bribery and corruption, money laundering, and economic sanctions. The company has been working to fill gaps in its early compliance efforts but still expects regulators will impose fines for past conduct.”
He also noted the outcome of the investigation was still uncertain. It could be a fine or something else, which is the regulators’ decision. However, Binance is working with them to correct its mistakes and put the past behind them.
In December, it was reported that federal authorities were in discussion with Binance for a potential settlement. However, the authorities were also contemplating if the evidence they gathered was enough to bring charges against Binance and some individuals, including the exchange’s CEO, Changpeng Zhao.
