Article:
New York - Binance founder and chief executive officer Changpeng Zhao has announced that he will step down and plead guilty to breaking criminal U.S. anti-money laundering laws as part of a $4 billion settlement, according to prosecutors. The resolution comes after a years-long probe into the world's largest cryptocurrency exchange.

The settlement will address criminal charges against Binance for conducting an unlicensed money transmitter business, conspiracy, and violating sanctions regulations, as stated in the filing. Under the terms of the agreement, Binance will be required to pay $1.81 billion within 15 months, along with a further $2.51 billion forfeiture as part of the deal with the Justice Department. Additionally, Zhao will personally contribute $50 million to the settlement.

As per the plea agreement, Zhao will no longer be involved with Binance in any capacity. His plea hearing is scheduled for 10:45 a.m. Pacific Time (1:45 p.m. ET) in Seattle.

The settlement also implicates Binance's former chief compliance officer, Samuel Lim, who will face charges as part of the resolution. Reports suggest that Binance will be tasked with addressing and rectifying its compliance lapses.

No comments have been made by lawyers representing Zhao or Binance, and the company spokesperson has not responded to requests for comment. Lim and his legal team have also not provided any immediate response.

The U.S. Justice Department has been investigating Binance since at least 2018, as previously reported by Reuters. This settlement comes amidst ongoing legal challenges faced by the cryptocurrency exchange in the United States.

In December 2020, federal prosecutors requested internal records and communications involving Changpeng Zhao, relating to the company's anti-money laundering efforts. Meanwhile, the CFTC (Commodity Futures Trading Commission) filed civil charges against Binance in March, alleging the failure to establish an effective anti-money laundering program for detecting and preventing terrorist financing.

According to the CFTC, internal discussions at Binance acknowledged that their platform potentially facilitated illegal activities, with Lim reportedly stating that terrorists tend to send "small sums" as larger amounts would be considered money laundering.

The resolution of this settlement marks a significant development in the legal proceedings surrounding Binance, which will now navigate the aftermath of the settlement and undertake necessary compliance measures to rectify its shortcomings.