CFTC fines Binance’s former chief compliance officer $1.5 million
Caroline Pham of the US Commodity Futures Trading Commission (CFTC) stated that in addition to fines against Binance and CZ, if the proposed settlement plan is approved by the judge, Binance's former chief compliance officer Samuel Lim will also pay a fine of $1.5 million. This is the first time that the CFTC has held a compliance executive personally responsible.
Shenyu: Thanks to CZ’s contribution to the industry, Binance’s settlement agreement with the U.S. Department of Justice clears the way for ETFs
On November 22nd, Shen Yu, on its social platform, stated that the regulatory agreement reached between the US Department of Justice and Binance paved the way for ETFs. Thank CZ for his outstanding contributions to the industry. May we explore the infinite possibilities of DeFi together with CZ.
U.S. Department of Treasury FinCEN: Binance Grants VIP Users the Privilege of Being Notified in Advance When Under Investigation by Law Enforcement
According to a report from FinCEN, the US Treasury Department's financial crime enforcement network, VIP users of Binance have been granted a series of special privileges, including advance notification in the event of a law enforcement investigation.In a 92-page order, the Treasury Department claims that Binance "developed a process whereby if a VIP user becomes the subject of a law enforcement investigation, they are notified," effectively monitoring its VIP customers.According to FinCEN, the process is relatively straightforward, with Binance VIP team members instructed to contact the investigated user through "all available means," including sending text messages and making phone calls to notify customers, for example, that their accounts have been frozen or thawed. FinCEN warned Binance VIP team members not to be too obvious in their notifications.The company told the VIP team: "Under FinCEN's order, we can't give a strong hint in any case and directly ask the user to run/exit, otherwise we will be prosecuted or held personally responsible. For example, your account has been unlocked/your account has been investigated by XXX, which is usually a sufficiently serious hint."According to FinCEN, Binance's internal reports indicate that in 2019, VIP customers "consistently represented two-thirds to three-quarters of the trading volume and revenue on Binance.com," and added that "therefore, Binance had a significant business incentive to do its utmost to support these VIP customers." Although rules prohibit Americans from trading on the platform, US users "represent an important part of the VIP user base" and sometimes account for 20% of all exchange fees.
Net outflows from Binance, Kraken and Coinbase totaled $692 million in the past 24 hours
On November 22nd, according to on-chain data from Nansen, Binance had a net outflow of $514 million in the past 24 hours, Kraken had a net outflow of $121 million, and Coinbase had a net outflow of $57.48 million. The three combined had a net outflow of nearly $700 million.
Binance’s new CEO Richard Teng announced three priorities: users, regulation and cooperation
Binance's new CEO Richard Teng stated on X platform that his three main focuses for future work are: 1) to reassure users that they can have confidence in the company's financial strength, security, and protection; 2) to collaborate with regulatory agencies to maintain high standards globally, promote innovation, and provide important consumer protection; 3) to work with partners to promote the growth and adoption of Web3.As introduced in a Binance blog post, Richard Teng has over thirty years of experience in financial services and regulation. He joined Binance in August 2021 as CEO of Binance Singapore, and shortly after became the head of regional markets at Binance, responsible for the Middle East and North Africa, Europe, and ultimately all regions outside of the United States. Prior to joining Binance, Richard served as CEO of the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority and as Chief Regulatory Officer of the Singapore Exchange (SGX) and Director of Corporate Finance at the Monetary Authority of Singapore.
Bloomberg: Zhao Changpeng’s prison term is not expected to exceed 18 months
Binance Holdings Limited and its CEO Zhao Changpeng have admitted to committing money laundering and violating US sanctions, and have reached a comprehensive settlement agreement with the United States, allowing the cryptocurrency exchange to continue operating. In addition, Zhao Changpeng faces a maximum of 10 years in prison, but under the plea agreement, it is expected that the sentence will not exceed 18 months, which seems to spare him from the severe punishment faced by other famous cryptocurrency criminals. The US Department of Justice has not yet made a final decision on his imprisonment, and defense lawyers said in court that sentencing will be postponed for six months.
Binance Lianchuang He Yi: There are no accusations of improper use of user funds and market manipulation, and will strengthen compliance construction
In response to Binance's historic settlement with US regulators, Binance co-founder He Yi made a statement emphasizing that US regulators did not accuse Binance of misappropriating user funds or participating in market manipulation. He Yi stated that Binance will continue to strengthen its compliance measures and continue to build and develop its platform.
U.S. Treasury: Retains access to Binance’s books, records, and systems for five years
US Treasury announced that in order to ensure Binance fulfills its settlement terms, including not providing services to Americans and ensuring illegal activities are resolved, the Treasury will retain access to Binance's books, records, and systems for five years through a monitor. If Binance fails to fulfill these obligations, it may face additional significant fines, including a deferred fine of $150 million if Binance fails to comply with required compliance commitments and regulatory terms, which will be collected by FinCEN.
Binance agrees to pay $1.81 billion in criminal fines and will forfeit $2.51 billion in assets
Reuters reported that prosecutors in charge of this case stated that Binance has agreed to pay a criminal fine of approximately $1.81 billion to the United States for the trading platform and will pay it within 15 months after being sentenced. In addition, Binance has agreed to forfeit $2.51 billion in assets. CZ has also agreed to pay a fine of $50 million to the CFTC.
Net token outflows from Binance exchange increased to $45 million in the past hour
According to Nansen data, the net outflow of Binance exchange tokens in the past hour has increased from $10,000 to $45 million (limited to the Ethereum blockchain).
