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

article-image

Source: Shutterstock / salarko, modified by Blockworks

share

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.”


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.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

Research Report Templates.jpg

Research

In this report, each analyst on the Blockworks Research team lays out their highest conviction thesis for 2025.

article-image

Bitwise argued in its 2025 outlook report that bitcoin ETFs will attract more flows in 2025 than they did in 2024

article-image

Odds of an interest rate cut later this month are all but out the window

article-image

Exploring the drama surrounding a shiny new stablecoin

article-image

Asset Reality’s Aidan Larkin explains how the US government offloads bitcoin

article-image

We’re talking about FTX here, so we could have anticipated that things wouldn’t go as smoothly as planned

article-image

Half the surveyed advisers still consider regulatory uncertainty the top hurdle for future crypto investments