Binance ‘Likely’ to Pay Fines in US Over Regulatory Probes: WSJ

The world’s largest crypto exchange has been under investigation from several major US regulators relating to its US affiliate, Binance.US


Source: Shutterstock / salarko, modified by Blockworks


Binance is expecting to pay fines related to its business in the US following investigations by regulators over affiliations with two trading firms and its CEO Changpeng Zhao.

A Securities and Exchange Commission probe is seeking to determine the relationship between Zhao, Sigma Chain AG and Merit Peak — two market makers acting on behalf of Binance’s US affiliate. 

Speaking with the Wall Street Journal on Wednesday, Binance’s chief strategy officer, Patrick Hillmann, said the exchange is working with regulators to determine the appropriate remedial measures necessary to make amends.

The outcome of these discussions will “likely” result in a financial penalty, with the possibility of further action to be determined by the regulatory authorities, Hillman said, without expanding on the size of the potential penalties.

As a key focus area, regulators are scrutinizing Binance.US over its disclosure to clients with regard to its connection to the firms, according to a separate WSJ report on Wednesday.

A spokesperson for the exchange declined to comment on its conversations with regulators.

The Justice Department has also been investigating Binance over possible violations of the US’ Bank Secrecy Act since at least September of last year.

The department’s money laundering unit previously requested the exchange provide communications from Zhao and other top executives resulting from issues including identifying illicit transactions and attracting US-based customers.

The Commodity and Futures Trading Commission (CFTC) too has been probing Binance’s global exchange over allegedly allowing US nationals to trade on its platform since March 2021.

Hillman, pointing to recent regulatory actions in the US, said the current climate surrounding digital assets remains “confusing” though he said he feels confident about where the discussions with regulators are headed.

Last week, the SEC hit Kraken with two charges related to its staking products, with the exchange agreeing to settle for $30 million.

The move immediately drew condemnation from the community, including SEC Commissioner Hester Peirce, who’ve long called out the agency’s attempts to bypass Congress as “regulation by enforcement.”

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space


Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?


Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month


It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet


Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend


Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million