Binance and Former CEO Ordered to Pay $2.7 Billion in CFTC Settlement

The U.S. District Court for the Northern District of Illinois has approved a settlement between the Commodity Futures Trading Commission (CFTC) and Binance, as well as its former CEO Changpeng Zhao. The court found that Binance violated the Commodity Exchange Act and CFTC regulations by actively soliciting customers in the United States and allowing them to trade on the platform without proper compliance controls. As part of the settlement, Zhao will pay a $150 million civil monetary penalty, while Binance will disgorge $1.35 billion in ill-gotten transaction fees and pay a $1.35 billion penalty to the CFTC. The court also requires Binance and Zhao to make certifications regarding improved compliance controls and imposes permanent injunctions against further violations. Binance's former Chief Compliance Officer, Samuel Lim, has been ordered to pay a $1.5 million civil monetary penalty for aiding and abetting Binance's violations.