US Prosecutors Demand Judge’s Verdict on Binance Plea Deal – What’s at Stake?

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Binance Holdings Ltd., one of the leading crypto trading companies, is currently under scrutiny as US prosecutors are pushing for the approval of a historic $4.3 billion plea deal.

Meanwhile, this plea deal, tied to the accusation of purposefully breaking the country’s economic sanctions laws, highlights how serious Binance’s alleged wrongdoing is and its potential impact on the entire financial system.

Binance’s $4.3 Billion Fine

Last year, Binance pleaded guilty to charges involving anti-money laundering and sanctions violations. However, the US prosecutors argue that top executives at Binance intentionally broke rules, causing serious problems and resulting in one of the largest criminal penalties in US history.

The $4.3 Billion proposed agreement also mandates careful monitoring of Binance for up to 5 years.

Binance’s Failure to Register

At the heart of the case lies Binance’s failure to register as a money services business, leaving the platform, its users, and the US financial system vulnerable. US Prosecutors also say that Binance didn’t have a good enough system to stop money laundering, making it easy for people to exploit the platform.

Binance’s Ties to Terrorism

Later in the court preceding Binance openly admitted to facilitating transactions involving terrorist groups, including Hamas, on its platform. This makes the charges even more serious and raises questions about how well Binance was keeping an eye on its platform.

Binance CEO’s Guilt

The former CEO, Changpeng Zhao, has already said he’s guilty of breaking money laundering rules and is waiting to hear his punishment. Even though he could get up to 10 years, there’s a deal for a much shorter sentence—maybe no more than 18 months.