Timeline | Historical reconciliation, what happened to Binance and CZ last night?

Jaleel加六and others2Authors

23-11-22 10:29

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Starting in 2018, after five years of investigation, the dust finally settled by the end of 2023. On November 22nd, Binance completed this historic settlement at the cost of its founder and CEO CZ's admission of guilt and resignation from the CEO position, potential months of imprisonment, and a fine of over 4 billion US dollars (the exact amount is yet to be confirmed). Compared to the long tug-of-war and constantly updated investigation information with the SEC, the Department of Justice appeared particularly low-key during this five-year investigation. In most cases, the investigated parties also need to remain silent. BlockBeats has compiled the relevant information into a timeline for readers to understand and filter the entire settlement process:

2022 December

The US Department of Justice has differences on whether to sue Binance.

Insiders say that the US Department of Justice's investigation into Binance began in 2018 and includes allegations of unlicensed remittances, money laundering, and violations of criminal sanctions. In addition, sources say that officials from the Department of Justice have discussed possible plea agreements with Binance's lawyers. Subsequently, according to Reuters, there has been disagreement among prosecutors at the Department of Justice as to whether to bring criminal charges, including money laundering, against Binance. Some prosecutors believe that they have enough evidence to bring criminal charges against Binance executives, including CZ, while others believe that more time is needed to review additional evidence.

2023

May 6th

Bloomberg: US Department of Justice is investigating whether Binance violated sanctions against Russia

According to Bloomberg, the US Department of Justice is investigating whether the cryptocurrency exchange platform Binance was used to help Russia evade sanctions from the US. Binance responded by stating that the platform complies with all US and international financial sanctions and has a zero-tolerance policy towards dual registration, anonymous identities, and unclear sources of funds.

August 3rd

Semafor: US Department of Justice officials are considering fraud charges against Binance, and are also considering fines or delays in light of its market impact.

According to the US financial media Semafor, sources revealed that officials from the US Department of Justice are considering bringing fraud charges against Binance, but are concerned that this action will have an impact on retail traders. Prosecutors are considering other options, such as fines and deferred or non-prosecution agreements. This outcome will be a compromise, holding Binance accountable for its actions while minimizing harm to consumers.

November 21st

The US Department of Justice is seeking over $4 billion in fines from Binance to settle criminal charges, with the plan expected to be released by the end of this month.

According to sources cited by Bloomberg, the US Department of Justice is seeking a fine of over $4 billion from Binance as part of a proposed settlement for its years-long investigation.

Binance transferred over 3.9 billion USDT from its cold wallet to hot wallet address 12 days ago.

On November 21st, according to information on the Tron blockchain, an address labeled "Binance-Cold 2" transferred over 3.9 billion USDT to a hot wallet address labeled "Binance 3" on November 9th.

November 22nd

The US Department of Justice has announced that it will announce a settlement agreement with Binance.

The US Department of Justice will announce a major cryptocurrency enforcement action on November 22 at 4:00, with a lineup including Attorney General Merrick Garland, Treasury Secretary Janet Yellen, Deputy Attorney General Lisa Monaco, and Commodity Futures Trading Commission Chairman Rostin Behnam. According to Reuters citing sources, the settlement agreement will include charges against individuals and resolve charges of violating the Bank Secrecy Act and other US laws, involving multiple US agencies: the Department of Justice, the Commodity Futures Trading Commission, and the Treasury Department's Financial Crimes Enforcement Network.

Binance founder CZ has appeared in Seattle court

Binance founder CZ has appeared in a Seattle court. BlockBeats previously reported that US regulators will impose a $4.3 billion fine on the world's largest cryptocurrency exchange Binance today. Founder CZ has agreed to resign and plead guilty, and will not be allowed to serve in an executive position at Binance, but will still retain a majority stake in Binance.

Binance announced a historic settlement with US regulatory agencies, strengthening compliance and transparency.

Binance announced a resolution with the US Department of Justice, Commodity Futures Trading Commission, Office of Foreign Assets Control, and Financial Crimes Enforcement Network regarding historical registration, compliance, and sanctions issues. The resolution marks the company's acknowledgment of past criminal compliance violations and indicates that it will use this as an opportunity to lay the foundation for the next 50 years of development. The US agencies' resolution did not accuse Binance of misappropriating user funds or market manipulation.

Bloomberg: CZ admits to committing money laundering and violating US sanctions, and steps down as Binance CEO.

The regulatory agency will impose a $4.3 billion fine (including criminal and civil fines) on Binance, the world's largest cryptocurrency exchange. Binance will continue to operate with this penalty. In addition, founder CZ has agreed to resign and plead guilty, and will not be allowed to serve as an executive at Binance, but will still retain a majority stake in Binance. He will personally appear in the Seattle Federal Court on Tuesday afternoon to plead his case. CZ admitted to committing money laundering and violating US sanctions, and reached a comprehensive settlement agreement with the United States, allowing the cryptocurrency exchange to continue operating.

CZ has confirmed his resignation as CEO of Binance. The new CEO will be Richard Teng, the former head of global regional markets at the company.

Binance founder CZ announced his resignation as CEO. CZ stated that although this decision was emotionally difficult, he must take responsibility for past mistakes for the benefit of the community, Binance, and himself. The new CEO will be Richard Teng, former global regional market leader of the company. CZ will continue to serve as a shareholder and former CEO, providing consulting services to the team. He plans to take a short break before investing passively in areas such as blockchain, Web3, DeFi, artificial intelligence, and biotechnology.

It is expected that CZ's sentence will not exceed 18 months.