Binance faces $2.7 billion fine

According to the CFTC statement, the court found that CZ and Binance violated the US Commodity Exchange Act (CEA) and CFTC regulations. CZ was fined $150 million, while Binance was ordered to return $1.35 billion in illegal transactions and a $1.35 billion fine to the CFTC.

CZ has stepped down as CEO of Binance

According to CoinTelegraph , the settlement marks the end of the CFTC lawsuit against Binance and its former CEO. On March 27, the CFTC accused Binance, Binance.US, and CZ of operating an unauthorized exchange, selling unregistered securities, violating commodity laws, and mishandling customer funds.

On November 22, CZ announced that he was leaving Binance and pleading guilty to violating anti-money laundering laws. He agreed to pay a $4.3 billion fine under a settlement with the US Department of Justice (DOJ), CFTC and the US Treasury Department so that the cryptocurrency exchange could continue operating.

On December 7, the court ordered CZ to remain in the US until sentencing in February 2024, where he faces an 18-month prison sentence for money laundering.

As part of the agreement, both CZ and Binance agreed to take additional measures to ensure Know Your Customer (KYC) identity verification processes are maintained on the exchange. Additionally, Binance must implement a corporate governance structure, including a board of directors, a legal committee, and an audit committee.

The court also separately ordered Samuel Lim, former Binance Chief Legal Officer, to pay a $1.5 million fine for aiding and abetting Binance's violations and engaging in activities outside the United States to evade the law.

Richard Teng, former global head of markets at Binance, has become the company’s new CEO. In an interview with Cointelegraph on December 5, Teng said the company has completely changed and is committed to complying with regulatory requirements.

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