Changpeng Zhao, the CEO and founder of Binance, has entered a guilty plea for charges related to money laundering, unlicensed money transmitting, and violations in Seattle.
As part of the plea deal, Binance will pay over $4 billion in fines and penalties.
The settlements were reached with the U.S. Treasury Department and the Commodity Futures Trading Commission.
In exchange for admitting guilt, Zhao will step down as CEO and pay a $50 million fine. Prosecutors are seeking an 18-month prison sentence for Zhao, and Binance will be subject to a government monitor overseeing its operations.
The company will also be without Zhao’s involvement for three years after the monitor’s appointment.
The attorney general, Merrick Garland, stated that Binance’s payment represents one of the largest corporate penalties in U.S. history.
This development comes as the second-largest cryptocurrency exchange faces charges of money laundering, following a similar case involving Sam Bankman-Fried, former CEO of FTX.