DOJ alleges AML, sanctions violations against Binance, CEO Changpeng Zhao in unsealed indictment

The indictment followed leaks Monday that a Binance settlement deal was forthcoming

share

The US Department of Justice unsealed its indictment against Binance on Tuesday.

The indictment, originally filed on Nov. 14, was filed in the Western district of Washington.

The US accused Binance and Binance CEO Changpeng Zhao of violating the Bank Secrecy Act, alleging that the violations go back as far as 2017. The indictment was unsealed ahead of an expected settlement announcement to be led by the DOJ. 

A press conference is scheduled for 3 pm ET. 

The world’s largest crypto exchange also failed to “maintain an effective” anti-money laundering program and knowingly violated economic sanctions. 

The indictment names both Binance and Zhao, and it also alludes to “Individuals 1 and 2,” though it does not detail who the individuals are. 

“The United States has reached plea agreements with Zhao and Binance,” a follow-up document in the court docket said. “These agreements were negotiated in tandem and are designed to address complex questions about future monitoring and compliance, as well as the ongoing roles of Binance and Zhao in the cryptocurrency industry.”

“The purpose of the conspiracy was to allow Binance to operate as a virtual currency exchange and gain market share and profit as quickly as possible,” the DOJ alleges. “Defendants chose not to comply with US legal and regulatory requirements because it determined that doing so would limit its ability to attract and maintain US users.”

The defendants then knowingly “concealed Binance’s avoidance and noncompliance.”

On Monday, Blockworks reported that the DOJ was seeking to let Binance maintain its operations, effectively preventing another FTX-like collapse that would shake the crypto world. 

The Wall Street Journal reported Tuesday that Zhao plans to step down as CEO and will plead guilty to anti-money laundering violations. 

The Justice Department, alongside the CFTC and the Treasury Department, will host a press conference Tuesday afternoon to discuss “significant” crypto enforcement actions.

This is a developing story.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 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 (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

Big blockers wasted a bitcoin fortune trying to prove a point

article-image

Coinbase’s newest acquisition includes the CEO and Head of Research from Opyn

article-image

Crypto’s highest purpose might be to make markets better by making them bigger

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana

article-image

The acquisition is Pump.fun’s first, and comes just days before its planned ICO

article-image

As Trump’s tariff war reignites, everyone is assuming the dollar will continue its path lower. But the journey might be bumpy