DOJ Charges Binance, Mandates Binance Exit, CZ Pleads Guilty

The Department of Justice has unveiled criminal charges against Binance, Binance U.S., and Changpeng “CZ” Zhao.

Attorney General Merrick B. Garland overlooking Binance and Changpeng Zhao leaving the United States.
Created by Gabor Kovacs from DailyCoin
  • The U.S. The Department of Justice has unveiled several criminal charges against Binance. 
  • The DOJ is seeking billions in settlements from the cryptocurrency exchange and its former CEO.
  • Binance has elected a new interim CEO to succeed CZ.

The U.S. Department of Justice has led an extensive investigation of cryptocurrency exchange Binance throughout the year, over allegations of money laundering and criminal activities. However, unlike the SEC and CFTC, who have openly charged the exchange, the Justice Department had kept tight-lipped over the precise details of the probe.

Now, the DOJ has reached a charging decision, unveiling a list of criminal charges against Binance and kicking off resolutions.

DOJ Seeks CZ Probe and $4.3B

At a press conference on November 21, U.S. Attorney General Merrick Garland announced that the U.S. Department of Justice had secured felony criminal pleas from Binance, Binance U.S., and its former CEO Changpeng “CZ” Zhao. 


At the center were allegations of the violation of U.S. anti-money laundering requirements, operations of an unregistered money transmitter business, and sanctions law breach. 

The Justice alleged that Binance knowingly facilitated millions of dollars of transactions for individuals under U.S sanctions, making it easy for criminals to move stolen funds without hindrance. The exchange also allegedly processed transactions for terrorist groups, including ISIS, Hamas, and Al-Qaeda.

As part of a potential settlement, Binance and CZ will pay a total of $4.3 billion to the DOJ and other U.S. regulatory agencies including the Treasury Department and the Commodity Futures Trading Commission (CFTC). The exchange will pay a $2.51b forfeiture to the agencies, and an additional $1.81 billion over a 15-month period. The former CEO is also mandated to pay $50 million.


Binance U.S. is expected to make a complete exit from the United States. The exchange is also mandated to file regular reports to the DOJ and alert the regulators of suspicious financial activities on its platform. 

Binance has announced the election of an interim CEO, Richard Teng, its now-former Global Head of Regional Markets. 

To dive deeper into the former CEO’s expected guilty plea, read here:
CZ Steps Down As Binance CEO As Exchange Pleads Guilty 

Read more on the other legal showdown involving Binance and the SEC:
Judge Rejects Binance and SEC’s Bid for Confidentiality 

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.