CFTC Ties Up Binance Investigation Following $2.8B Fine

Binance and CZ are mandated to ensure strict compliance with the commission’s regulations; otherwise, they risk additional legal consequences.

Binance CZ in the middle of a storm.
Created by Kornelija Poderskytė from DailyCoin
  • The Commodities and Futures Trading Commission has concluded its legal battle with Binance and CZ.
  • The commission was a part of the regulatory commissions involved in the November DOJ settlement.
  • Binance and CZ still face multiple legal challenges.

Over the past year, Binance has grappled with intense regulatory woes, marked by multiple legal disputes with major enforcement agencies. The bulk of the action against the exchange culminated on November 21, 2023, when the US Department of Justice secured guilty pleas from former CEO Changpeng “CZ” Zhao for violations of sanctions laws and anti-money laundering requirements.

The DOJ’s settlement is also tied to the year-long legal disputes with Binance from the Commodities and Futures Trading Commission (CFTC) and the U.S. Treasury Department.

Finalizing its side of the resolution, the CFTC is formalizing the results of its case by officializing its share of the announced $4.3B settlement.

Court Approves CFTC Settlement

In a press release on Monday, December 18, the Commodities and Futures Trading Commission announced that the U.S. District Court had approved its $2.8B portion of the $4.3B DOJ settlement for the Northern District of Illinois.


The approval encompasses a consent order, which includes a permanent injunction, civil monetary penalty, and equitable relief against Binance, its affiliates, and former CEO Changpeng “CZ” Zhao.

Zhao is mandated to pay a personal fine of $150 million, while Binance will pay $2.7 billion in two installments of $1.35 billion.


For compliance control, the order mandates Binance to provide certification for implementing enhanced measures in operations within the exchange, such as forming an Audit Committee and a Board of Directors with independent members. 

Binance and Zhao are prohibited from committing future violations of the CFTC’s regulations, such as offering unregistered derivatives contracts to investors. Failure to comply may result in additional legal consequences.

While the CFTC settlement concludes a year-long battle for Binance, the exchange and its former CEO, Zhao, grapple with heated legal troubles in the United States.

Having opted out of being included in the DOJ’s crackdown on Binance, the Securities and Exchange Commission (SEC) is still probing the exchange for alleged wrongdoings.

The lawsuit, which alleges that Binance violated U.S. laws and facilitated the sale of unregistered securities, has persisted since June 2023.

The commission has recently sought to bolster its case by incorporating CZ and Binance’s guilty pleas, a move that was slammed and denounced by Binance as an overreach and breach of procedure.

The exchange’s former CEO, Changpeng “CZ” Zhao, is currently confined to the United States awaiting trial on criminal charges. CZ could face a sentence of up to 10 years behind bars if convicted.

On the Flipside

  • Industry experts have questioned the DOJ-Binance settlement as unusual, given Zhao’s agreement to pay such a substantial sum while still facing charges.
  • CZ’s plea deal allows him to appeal any sentence over 18 months.
  • The DOJ settlement led to the ouster of CZ from Binance and Binance U.S. 

Why This Matters

While the CFTC settlement calms Binance’s storm, the exchange’s cumulative woes still threaten its operations, reputation, and overall position in the cryptocurrency market.

The U.S. crypto community seeks to counter intense regulatory standards with leadership change. Read more:
Pro- Crypto Candidates Get $78M Boon from Blockchain Firms

To learn more about CZ’s mandated stay in the US until trial, read here:
Here’s Why CZ Remains Grounded in the U.S. Despite Bail Bond

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.