Binance, the world’s largest cryptocurrency exchange, is expecting to pay monetary penalties to settle investigations into its business in the US, according to the company’s chief strategy officer, Patrick Hillmann. The move represents a major shift in tone from the exchange, which had previously disputed reports that it was under investigation and mocked the media outlets that reported them.
Admission of Breaking Laws
In an interview with the Wall Street Journal, Hillmann made an apparent admission that the company’s executives were unfamiliar with the laws and rules surrounding bribery, corruption, and money laundering. He said Binance is
“working with regulators to figure out what are the remediations we have to go through now to make amends for that,” adding that the outcome could range from “like a fine” to “could be more.”
US Department of Justice Investigation
The US Department of Justice has been investigating Binance since 2018 over any lapses in compliance with US anti-money laundering laws and sanctions, according to a report by Reuters in December. The report indicated that prosecutors were split about whether it was the right time to conclude the probe.
Binance founder and CEO Changpeng Zhao had publicly disputed the report, alleging that the newsrooms were “still working for” FTX founder Sam Bankman-Fried. Zhao provided no evidence to back up his claims and urged his followers to “ignore the FUD.”
The change in tone for Binance comes as it’s becoming publicly apparent that things are not all okay for the firm. The SEC has told Paxos, which issues BUSD stablecoin for Binance, that it plans to take action against the firm over such issuance.
Earlier this week, Paxos said it had stopped issuing new BUSD tokens at the direction of the New York Department of Financial Services.
Following its previous public denial of any wrongdoing, the new admission from Binance’s executives could have significant implications for the company’s future. The outcome of the investigation remains to be seen.
