The exchange had agreed separate settlements with DoJ and CFTC. Nonetheless it still disputes the 13 SEC violations

This is the first time Binance agrees on settlement with DoJ US amounting more than $4.3 billion and above. Moreover, the virtual currency exchange will also have to pay the American commodity commission an additional $2.85 billion to settle.

The Doj has just confirmed a landmark corporate settlement in a case involving Binance whereby FinCEN will take up $3.8 billion while OFAC will receive $968 million on Tuesday.

A separate settlement deal between Binance Holdings and the Commodity Futures Trading Commission stipulates that Binance must reimburse about $1.35 billion in “ill-gotten gains,” plus an additional $1.35 billion in civil fines.

Additionally, Changpeng Zhao who was Binance’s previous CEO has agreed to pay civil penalties amounting to $150 million to the authority and Samuel Lim, who served as the Chief Compliance Officer in Binance is set to pay additional $1.5 million.

A couple days ago, DoJ announced the charges against Binance, while concurrently, Binance confessed that it had violated AML/CTF and sanction regulations in the USA. Even CEO Changpeng Zhao admitted that he breached anti-money laundering rules and resigned from his role.

According to United States Treasury Secretary Janet Yellen; “Profit ahead of compliance, Binance ignored their legal duties. They overlooked some important stuff which helped the terrorists, hackers and pedophiles to move their money through their system”.

Following Yellen, “At inception, Zhao and other Binance executives have made up their mind to benefit from the US markets while disregarding the requirements of American laws,” affirmed Attorney General Merrick Garland.

The company is required to exit all the financial markets in the US permanently and comply with strict set of sanction compliance obligations. Furthermore, Binance shall undergo a monitoring process of five years, which will involve the US Treasury to examine its books, records, and systems. The alleged violations can result in further fines of up to $150 million suspended.

However, the charges filed by the US securities regulator against Binance and Zhao are not mentioned among these settlements. This means that SEC will go on fighting the case against the exchange and its ex-CEO until a different arrangement is made. After the announcement on the settlements, Zhao, Binance’s CEO, tweeted an apology for his mistakes and took responsibility as well.

In an official blog post, Binance expressed: Since it began as a small company when the industry was still immature with little regulation, Binance despite its flaws always put users’ protection first and has invested greatly into the security and compliance. Binance’s rapid international expansion caused several mistakes along the way.

However, Binance and Zhao asserted that the agreement was not a confession of guilt in respect of the charges of embezzlement and market manipulation. The ongoing SEC lawsuit against Binance claims the exchange “having commingled the crypto assets of users with their own,” for instance.

However, in all these chaos, Richard Teng was appointed as a new CEO of a cryptocurrency exchange leader, replacing Zhao.