#CybSec
💼 Changpeng Zhao, the Chief Executive Officer of Binance, the world's leading cryptocurrency exchange, has officially resigned. This move comes as Changpeng Zhao pleads guilty to severe money laundering violations, acknowledging personal mistakes. Richard Teng, previously heading regional markets, steps in as the new CEO.
⚖️ The Justice Department demands Binance to pay a staggering $4.3 billion in penalties and forfeitures. Allegations include aiding users in evading global sanctions. Specifics reveal transactions totaling $900 million between US and Iranian users, alongside millions involving Syria, Crimea, Donetsk, and Luhansk.
💻 The department exposes Binance's role in enabling $106 million in Bitcoin transfers from the Russian darknet marketplace Hydra. This platform, utilized by criminals, operated from August 2017 to April 2022.
🏛 As part of the penalties, Binance is now obligated to report suspicious activities to federal authorities, aiding criminal investigations into cyber activities and terrorism fundraising.
🇺🇸 This development follows prior regulatory challenges in the US. In March, the Commodity Futures Trading Commission (CFTC) sought to ban Binance, alleging illegal operations and violations of financial laws. Subsequently, the Securities and Exchange Commission (SEC) accused Binance of a "web of deception" in June. The SEC claimed Zhao and Binance ignored rules safeguarding investors to continue US operations. Binance vowed to defend itself vigorously.
💰 These events align with the broader regulatory crackdown on the crypto industry, emphasizing the commitment of US authorities to tackle fraud and misconduct. This comes in the wake of the collapse of Binance rival FTX last year, with its founder, Sam Bankman-Fried, recently found guilty of fraud.
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