A federal court has approved a settlement between the US regulator of the derivatives markets and Binance.
According to the U.S. Commodity Futures Trading Commission, the federal court has found Binance and its founder and former CEO Changpeng Zhao guilty of violating the derivatives markets regulator’s rules and the laws governing commodity futures trading in the United States.
“In formalizing the settlement initially announced on November 21, the court finds that Zhao and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations, personally imposes a $150 million civil penalty on Zhao and requires Binance spends $1.35 billion in torts. receive transaction fees and pay a $1.35 billion fine to the CFTC.”
Last month, the CFTC reached an agreement with Zhao and Binance to pay $2.7 billion in fines to resolve the derivatives regulator’s charges. Zhao also resigned as CEO of the crypto exchange and is currently facing criminal charges.
At the time, the CFTC specifically accused Binance and its founder of “acting as an unregistered futures commission merchant (FCM); operating an illegal digital asset derivatives exchange; and failing to have adequate know-your-customer compliance controls, among other illegal activities.”
Last week, CFTC Chairman Rostin Behnam said Zhao faces the prospect of going to prison.
“The ruling will take some time. So I think we work together in law enforcement, both criminal and civil [and] we feel like we have a bad actor here and it sends a clear message.”
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