U.s. Officials Discuss The Binance Agreement.

Government officials have stated that Binance lacks fundamental security measures.

U.S. Department of Justice officials announced that CZ would acknowledge serious charges as part of the agreement. Attorney General Merrick Garland, in a press conference, noted that although CZ would personally defend himself in a U.S. federal court, he resides outside the country. Garland also mentioned that the agreement involved a payment of $4.3 billion.

According to Attorney General Garland, Binance's policies allowed criminals to engage in illegal activities by facilitating the transfer of "stolen funds" through the exchange. Garland claimed that Binance appeared to comply with the law, but, in reality, violated it.

Garland stated, 'Binance prioritized its profits over the safety of the American people. Engaging in illegal activities with new technologies doesn't make you revolutionary; it makes you a criminal.

After Garland's statements, Treasury Secretary Janet Yellen announced that as part of the agreement, Binance would pay over $3.4 billion to the Financial Crimes Enforcement Network (FinCEN) and approximately $1 billion to the Office of Foreign Assets Control (OFAC) of the Treasury Department. CFTC Chairman Rostin Behnam indicated that under the proposed settlement, Binance would pay $2.7 billion in legal fines and compensation, CZ would pay $150 million, and former compliance chief Samuel Lin would pay $1.5 million.

In a blog post dated November 21, Binance expressed satisfaction with reaching an agreement with authorities, emphasizing the exchange's ongoing commitment to protecting user security.

We’re pleased to share we’ve reached resolution with several US agencies related to their investigations.

This allows us to turn the page on a challenging yet transformative chapter of learning that has helped us become stronger, safer, and an even more secure platform.

— Binance (@binance) November 21, 2023

Today, U.S. officials from various government agencies, including the DoJ, CFTC, and Treasury, held a press conference to summarize the crimes committed by CZ and Binance.

According to the DoJ:

⚫️ Binance facilitated transactions of over $900 million between U.S. and Iranian users (a country subject to strict U.S. sanctions).

⚫️ Deposits exceeding $100 million were accepted from the dark market Hydra.

⚫️ Deposits totaling $270 million were accepted from the now-illegal crypto mixing platform 'Best Mixer.'

⚫️ Binance lied about its non-compliant behavior.

⚫️ Despite pledging to restrict U.S. users from using the unregistered Binance exchange, it continued to allow some of the highest-volume American users to trade on the platform.

⚫️ Binance employees encouraged hiding the U.S. connections of these users and even opening new accounts. 

⚫️ CZ reportedly said, 'It's better to ask for forgiveness than permission.'

⚫️ To conceal the number of users in the U.S., Binance changed the user category 'US' to 'UNKWN' (unknown).

According to Secretary Janet Yellen:

⚫️ Binance supported child exploitation, the drug and narcotics industry, and various terrorist groups, including Al-Qaeda and ISIS.

Officials collectively issued a warning: 'Using new technology to violate the law doesn't make you 'disruptive'; it makes you a criminal.'

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