Here are the details of Binance and Changpeng Zhao’s plea deal

The DOJ made the plea agreements of Binance and Changpeng Zhao public on Tuesday

article-image

Aleksandr Khmeliov/Shutterstock modified by Blockworks

share

The Department of Justice unsealed its indictment against both Binance and CEO Changpeng Zhao on Tuesday.

The indictment — originally filed on Nov. 14 — contained details matching prior Blockworks reporting, including that Binance was facing a fine of around $4 billion.

Later Tuesday, the heads of the DOJ, Treasury Department and the CFTC will hold a press conference on “significant” crypto enforcement actions, though the DOJ has not confirmed that it will specifically be about Binance.

In follow-up documents, the DOJ detailed the plea deal taken by both Binance and Zhao.

Zhao’s plea agreement

As first reported by the Wall Street Journal, Zhao has agreed to step down as chief executive. He is further prohibited from operating or managing Binance for a period of three years “from the date a monitor is appointed.”

He will plead guilty to “violating and causing a financial institution to violate” the Bank Secrecy Act. 

He has also agreed to not make a “public statement” through attorneys or by himself “contradicting the acceptance of responsibility.”

Zhao agreed to pay a fine of $50 million, though the “government agrees to credit the Recommended Fine against the amount the Defendant pays to the Commodity Futures Trading Commission” in his CFTC suit resolution.

Binance’s plea agreement

Binance agreed to plead guilty to operating as an unlicensed money transmitting business and failing to comply with registration requirements. 

It also pleaded guilty to violating sanctions laws and will, as part of its deal, “cooperate with the government in any and all matters relating to the conduct described in the Plea Agreement.”

A compliance program suitable under US laws will be enacted, as the DOJ accused the crypto exchange of operating without a proper compliance program in the now-unsealed indictment.

Binance’s new CEO and the chief compliance officer will sign off on the exchange meeting the new disclosure and compliance requirements. 

Binance agreed to pay $1.8 billion (having received a 20% discount for “partial cooperation”) as a criminal fine, which is due 15 months after sentencing. 

Binance will also forfeit $2.5 billion to the government consisting of $1.6 billion collected from transactions involving US users and $898 million for transactions between US users and those in Iran — a country sanctioned by the US.

Similarly to Zhao, Binance agreed to not “contradict the acceptance of responsibility.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (6).png

Research

In recent months, a number of highly accretive developments were implemented across the protocol to improve fee capture, expand product functionality, and ultimately drive value accrual to the RUNE token, with more upgrades on the immediate horizon. These developments include hiking the minimum swap fee parameter to increase revenue, adding a Burn System Income Lever to reduce the RUNE supply, the addition of COSM-WASM smart contracting and IBC to enable an application layer, new chain integrations, and more.

article-image

A blockchain some thought dead in the water two years ago now feels cool

article-image

Former IRS agent and Binance executive Tigran Gambaryan will remain imprisoned in Nigeria’s Kuje prison

article-image

When Permissionless III wraps on Friday, there will be 26 days left until the 2024 presidential election

article-image

Plus, an update from the ground in Salt Lake City at Permissionless III

article-image

The US regulator accused the crypto market-making firm of acting as an unregistered dealer