The U.S. Attorney’s Office for the Western District of Washington raked in a record $1.51 billion in fines for 2024, with global crypto exchange Binance coughing up $1.5 billion of that—a hefty price tag for one of the district's biggest legal payouts.
Binance has been fined a total of $4.3 Billion for the major offenses, which include failing to register as an money transmission business and breaking U.S. Sanctions.
According to a statement released on Wednesday, the district collaborated with the Criminal Division’s Money Laundering and Asset Recovery Section and National Security Division in order to hold the company accountable for their actions.
"Our office worked closely with Department of Justice components on the criminal case against Binance," U.S. Attorney Tessa M. Gorman said.
Binance has agreed to withdraw from the U.S. marketplace completely. Its co-founder and CEO Changpeng Zhao is also part of this settlement. “CZ,” The company has resigned.
Zhao has also personally agreed to pay $50 million in fines and will not be allowed to have any further involvement in the business for at least 3 years.
In addition to the financial penalties, Zhao was sentenced to four months in prison for his role in the violations—another blow to his leadership in the company.
A coffee-stand owner paid $96,000 to settle a tax fraud case and a restaurateur settled for $500,000 in a tax fraud.
Civil collections included $217,000 from the sale of Dr. Frank Li's medical office and $1.23 million from Yakima Products for unpaid duties on imported aluminum.
District also received $2.86 million in asset forfeitures. This money will go to support the law enforcement effort and compensate victims of crime.
SEC and Binance Seek a 60-day Legal Pause
Binance and U.S. Securities and Exchange Commission under the acting chairman Mark Uyeda, have both requested that their legal dispute be suspended for 60 days.
After the SEC created a Crypto Task Force, both parties hoped that it would help to clarify regulatory frameworks as well as resolve the issue.
If approved, the pause would delay motions, including Binance's request to dismiss the SEC’s lawsuit accusing the exchange of violating securities rules.
Binance’s troubles are compounded by the fact that it is being investigated in France on charges of money laundering and fraud.
Stacy Elliott is the editor.