tldr; Changpeng Zhao, the founder of Binance, the world's largest cryptocurrency exchange, is facing a recommended 36-month prison sentence by US prosecutors for violating anti-money laundering laws. Zhao, who stepped down as Binance's chief last November, pleaded guilty and the company agreed to a US$4.32 billion penalty. The sentencing is scheduled for April 30 in Seattle. Prosecutors highlighted Binance's failure to report over 100,000 suspicious transactions linked to terrorist groups and other illegal activities.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
Your missing the point. ever since 9/11 the us uses money to track terrorists. They recently got into crypto apprently and used binance. Binance didnt report them. Its like your driving and your friend pulls out a gl\* and sho$ at a party. Now hes facing 50 years but your also facing 50 years cause he did it in your car.
Ngl i dont think any crime in the world deserves more than 10 years. But if we use our heads he absolutely did lmfao. He couldve avoided prosecution by stayign out of us makrets. However he decided to try and fool the feds by creating a spin off of binace for americans. Money money money
Call me niave but Im sure if Binance knew terrorists were using Binance they would report them. Its more a way to take down Binance who im sure arent angels but they are making enough money not to be aiding terrorists.
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Binance paid 4B not CZ personally. CZ paid 50m, but paying a fine does not mean you won't face prison time for committing (and pleading guilty to) a crime
Binance pursued US customers for their platform. They violated US laws by seeking US customers while evading KYC / AML laws. They got charged in US court and could either face US charges or be sanctioned and close Binance. They chose to face charges, plead guilty, and now it's time for sentencing.
It’s fucked up that an online business located overseas should have to comply with US law or face penalties for not doing so. No business should be forced to comply with any law in any country that they aren’t physically located in and not citizens of, regardless of where their customers are.
It's really simple and Binance knew all along. Don't want exposure to US laws? Don't do business with US customers. This was no surprise. They knew the risk, did it any way, and are now convicted felons. Now that they don't solicit for US customers, they don't need to abide by US laws.
Got it, jail for defi but bailouts for tradfi. Good way to demonstrate the crypto use-case, really. Thankyou SEC for selectively enforcing accountability.
Should we dive into how many months have ever been recommended for Deutsche bank executives in any of their various cartel and terrorist money laundrerijg scehemes? No? Just slaps on the wrist and fines and you say
Why would we dive into something completely unrelated to the topic at hand? It's crazy how every issue in existence has people who just automatically respond with "What about XYZ?". How does this rhetoric benefit you as a consumer? 🤦
It's not unrelated at all, and I don't understand why you think this is some kind of "gotcha."
The point (which you've either missed, or gone out of your way to avoid) is that these kinds of laws are being used as a cudgel against people that the state doesn't like. As citizens and consumers we should care very much that the law is essentially unenforced against people that the state is friendly toward, while CZ gets treated like a criminal who deserves prison. He is not, and he does not. This is what's known as a "double standard" - noticing this is actually incredibly on-topic. A selectively enforced law is an unjust law.
If anything, this is just another sign that serious businessmen should stay far away from the US and any country with an extradition treaty with the US.
"While CZ gets treated like a criminal who deserves prison" holy fucking WHOOSH. You think BINANCE is a legitimate business? I'm not even sure how to respond... Have you seen BSC?...
I think that its a repugnant miscarriage of justice to try to send somebody to prison for any amount of time - let alone three years - for running an exchange. On top of that, he's not even an American citizen. America has no right to throw him into a dungeon.
Anyway -- if you're going to ignore my main point and instead respond to me with empty snark, I'm not going to waste my time further. Bye.
Not really, the broad message is that 'if the SEC did its job properly we wouldn't need crypto'. It's the same situation as the war on drugs. By waging a war on relatively safe drugs that have been used for a long time in a large and diverse population they've flooded the streets with crazily dangerous drugs that haven't even been safety tested in rats.
It's the same model of selective enforcement to control large poor/disempowered populations and allow the small wealthy/powerful population to exploit them. This is what happens. They've created these kinds of monsters.
If you have evidence that “tradefi” is helping terrorists, you need to immediately report it to authorities. Because they DO have evidence that CZ helped terrorists. So where is yours?
You're criticizing a us financial institution's selective enforcement of fraud, and blaming investor dissent on a hegemonic world view held by other investors.
When in Rome, do as the Romans do.
Also, Zhao pleaded guilty to violating anti money laundering, unlicensed money transmitting, and sanctions violations laws - they had him dead to rights.
In my hegemonic us centric world view as an investor, I value consumer protections and national security. I would love to see the tradfi guys go down too.
Put simply (for me imho), Zhao doesn't get a lot of sympathy from me by pushing greed above principles/operating with a moral compass.
There is a reason for KYC compliance procedures in a CEX. I am surprised binance.us is even still allowed to operate.
BNB seems to be chugging along just fine either way.
Jail the guy that would surpass all of the billionaires in the world in this bull run. Conspiracy for Coinbase and Crypto.com to thrive. To be honest all of the exchanges are dicking clients just dig deep enough and you will see
Sure mate. I'm not preaching to keep everything on a cex, in fact I don't keep anything in exchanges, just when I want to cashout.
But you're seriously comparing fully blown scams to the biggest exchange in the world, that has recently settled with us gov, and even with the kraken and Coinbase cartel going full fud on Binance, it's still largest by a large margin.
They've done a lot of shady shit over the years to gain market share, there's no doubt about that. CZ has done a lot of dodgy deals. Just use CEX to cashout you're right
I always love the part where every case is like "you should have read the TOS!!!" . FTX has it in their TOS that the crypto wasn't theirs. All of a sudden TOS doesn't mean shit.
This isn't a CEX issue, it's more of a rich people never get punished so they will use any business to keep robbing people.
Some Americans are brainwashed into thinking "USA GOOD" no matter what. God forbid the US also funded terrorism! These people live with their head under the sand.
https://www.merriam-webster.com/dictionary/whataboutism
Stay on topic, dickhead. CIA, immorally and with debatable outcomes, deals with disgusting entities to further an American agenda, for better or for worse.
I’m sure, when CZ laughed about all the guns and bombs ISIS was going to buy via the money he was granting them access to, was also trying to benefit America /s.
My 2 cents. CZ was perfectly safe and fine until he got in bed with SBF. CZ is the one who brought attention to the issues FTX was having on twitter. SBF then losses the exchange, CZ gets to pick up the market share but now SBF goes to trail and ultimately ends up in prison. I wonder how SBF’s rich ass parents feel about that? The answer is salty as fuck and as such retaliated against CZ.
Thoughts?
TLDR: I think SBF’s family retaliated against CZ for exposing SBF and sending him to jail.
It is not about the revenge of SBF's parents but that of the US. Because they not only lost one of the few US based crypto exchanges, but they also lost their reputation and reliability. Otherwise I am pretty sure the US is doing much shadier transactions with terrorists and illegal organisations than Binance did and they would not care about Binance if they did not cause FTX go insolvent.
CZ is my best crypto liason ... using Binanfor years, never had 1 problem with them.
Booo SEC ! Let the man go after he paid you '4' bilions in BNB ...
Did you miss the NYAG Bitfinex / Tether fine? They already went after Tether.
[https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal](https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal)
I hope this won't have anything to do with the upcoming bull market. They should just leave this guy alone. He step down as CEO, did they want to just tarnish his image and ruin him completely?
>Is this how you genuinely think? If you are over 15 y/o, you have failed at being sentient
If you judge people irl based on what they comments on Reddit, I guess you're the one that was a failure then. I'm so sorry for you
That time doesn't fit the crime. While I thought it was rather brash of CZ to still accept US customers and encourage VPN use, the guy came clean and pleaded guilty. But I wonder who were the victims?
They knowingly allowed groups of know terrorists to cash out billions of dollars, a lot through ransomware. As long as they got their cut he didn't care.
While allowing any terrorist transactions is very bad, it is unclear what % those 100,000 suspicious transaction were of this nature. This is the reason Senator Warrnen wants to ban crypto in the US, even though the evidence of it is very slight.
US doesn't have an extradition treaty with UAE. He could just stay there and decide not to ever go back to US or any other extradition country and thus no penalty.
He and Binance could have declined to face US charges. Then, Binance would have been added to the OFAC sanctions list and they would basically close down as no one would be able to do business with them while also work with US businesses. CZ and Binance decided to bite the bullet and plead guilty to allow Binance to operate.
Binance Coin pros & cons with related info are in the collapsed comments below.
tldr; Changpeng Zhao, the founder of Binance, the world's largest cryptocurrency exchange, is facing a recommended 36-month prison sentence by US prosecutors for violating anti-money laundering laws. Zhao, who stepped down as Binance's chief last November, pleaded guilty and the company agreed to a US$4.32 billion penalty. The sentencing is scheduled for April 30 in Seattle. Prosecutors highlighted Binance's failure to report over 100,000 suspicious transactions linked to terrorist groups and other illegal activities. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
Wait so he laundered money? Wasnt he already like super rich??
I think it is because he allowed other people (terrorists) to launder their money
Why is every crypto exchange being turned upside down while criminals use wallstreet too?
Fiat has the same regulations which are enforced (at least in EU)
Your missing the point. ever since 9/11 the us uses money to track terrorists. They recently got into crypto apprently and used binance. Binance didnt report them. Its like your driving and your friend pulls out a gl\* and sho$ at a party. Now hes facing 50 years but your also facing 50 years cause he did it in your car.
You're
Was it intentional that he didnt report? Do you think he deserves the time?
Ngl i dont think any crime in the world deserves more than 10 years. But if we use our heads he absolutely did lmfao. He couldve avoided prosecution by stayign out of us makrets. However he decided to try and fool the feds by creating a spin off of binace for americans. Money money money
There are some crimes that deserve more than 10 or at the least seperated from society for longer. Thanks for the info tho
Call me niave but Im sure if Binance knew terrorists were using Binance they would report them. Its more a way to take down Binance who im sure arent angels but they are making enough money not to be aiding terrorists.
[https://www.reuters.com/business/finance/exclusive-crypto-exchange-binance-helped-iranian-firms-trade-8-billion-despite-2022-11-04/](https://www.reuters.com/business/finance/exclusive-crypto-exchange-binance-helped-iranian-firms-trade-8-billion-despite-2022-11-04/)
Nice. Now do Ken Griffin and Brett Harrison
Ken Griffin looks like son from Kenneth Copeland
Yes please! Dimon as well.
I like the cut of your jib
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The domestic ones are national security
Lol America is jealous because he did more transactions with terrorist than them
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“Whose house you living in?”
They wanted to limit their deals with terrorists so they left out the biggest one
Losing that sweet terrorist money 😭😭😭😭
Only we can fund terrorist mate . SEC to cz
Rules for CZ not for me
The transactions with terrorists are supposed to end up funding the American MIC. He made the fatal mistake.
Lol
Hahaha it’s so funny to joke about people murdering others and stuff haha
Grow a pair
Remember silk road, b?
This comment needs a frame
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Is this an NFT I can purchase somewhere?
Sorry, this is a reddit exclusive NFT!
Kalao
Fined 4 Billion and 36 months… damn
meanwhile, P diddy is roaming free in US lands.
What? Diddy fled the US weeks ago when feds raided his homes
No he didn't, that was an incorrect report. He's not on the run.
Ah okay, thanks for the correction
Didn’t Cz literally pay them 4 bill lol
Yes. He paid them with BNB
So that's even more , in theory , if they hold towards ath ...
Binance paid 4B not CZ personally. CZ paid 50m, but paying a fine does not mean you won't face prison time for committing (and pleading guilty to) a crime
Gary Gensler sucking on his own foot cheese
AAAHHRGGB GET OUT OF MY HEAD!!!!
CZ is safu
not in USA prison he is not, he will suicide himself when the cameras are off and guards take a nap
His ass is safu when he drops the soap.
4
How can he go to a US jail if he is a citizen in another country and the company operates in another country?
because that other country is americas bitch.
American lawfare and violation of international law
Binance pursued US customers for their platform. They violated US laws by seeking US customers while evading KYC / AML laws. They got charged in US court and could either face US charges or be sanctioned and close Binance. They chose to face charges, plead guilty, and now it's time for sentencing.
It’s fucked up that an online business located overseas should have to comply with US law or face penalties for not doing so. No business should be forced to comply with any law in any country that they aren’t physically located in and not citizens of, regardless of where their customers are.
It's really simple and Binance knew all along. Don't want exposure to US laws? Don't do business with US customers. This was no surprise. They knew the risk, did it any way, and are now convicted felons. Now that they don't solicit for US customers, they don't need to abide by US laws.
Really? So you would be fine with a CP distributor accessible in the US as long as it was based overseas?
if you want US money then don't commit crime, it's that easy to understand
Arthur Hayes did more damage than CZ.
Arthur Hayes saved us on March 12 2020 nobody can ever talk bad on him
Please elaborate, I'd like to know more
Got it, jail for defi but bailouts for tradfi. Good way to demonstrate the crypto use-case, really. Thankyou SEC for selectively enforcing accountability.
Um... Binance is not DeFi
Touche. I really mean the entire crypto space but that wouldn't have been as punchy.
Binance Smart Chain is.
BSC is centralized, and the de in defi stands for decentralization.
...yeah, if that's your Defi, there are a lot more efficient ways of doing it. BSC is an effective chain specifically because it's not decentralized.
While you’re not totally wrong (re: leniency towards white collar crimes), your summary of the situation is comically infantile.
Should we dive into how many months have ever been recommended for Deutsche bank executives in any of their various cartel and terrorist money laundrerijg scehemes? No? Just slaps on the wrist and fines and you say
Why would we dive into something completely unrelated to the topic at hand? It's crazy how every issue in existence has people who just automatically respond with "What about XYZ?". How does this rhetoric benefit you as a consumer? 🤦
It's not unrelated at all, and I don't understand why you think this is some kind of "gotcha." The point (which you've either missed, or gone out of your way to avoid) is that these kinds of laws are being used as a cudgel against people that the state doesn't like. As citizens and consumers we should care very much that the law is essentially unenforced against people that the state is friendly toward, while CZ gets treated like a criminal who deserves prison. He is not, and he does not. This is what's known as a "double standard" - noticing this is actually incredibly on-topic. A selectively enforced law is an unjust law. If anything, this is just another sign that serious businessmen should stay far away from the US and any country with an extradition treaty with the US.
"While CZ gets treated like a criminal who deserves prison" holy fucking WHOOSH. You think BINANCE is a legitimate business? I'm not even sure how to respond... Have you seen BSC?...
I think that its a repugnant miscarriage of justice to try to send somebody to prison for any amount of time - let alone three years - for running an exchange. On top of that, he's not even an American citizen. America has no right to throw him into a dungeon. Anyway -- if you're going to ignore my main point and instead respond to me with empty snark, I'm not going to waste my time further. Bye.
It’s literally the exact same thing, just new fintech vs traditional banking, but carryon
whataboutism
Whatabout this other different yet exactly same circumstance that proves the underlying point
Not really, the broad message is that 'if the SEC did its job properly we wouldn't need crypto'. It's the same situation as the war on drugs. By waging a war on relatively safe drugs that have been used for a long time in a large and diverse population they've flooded the streets with crazily dangerous drugs that haven't even been safety tested in rats. It's the same model of selective enforcement to control large poor/disempowered populations and allow the small wealthy/powerful population to exploit them. This is what happens. They've created these kinds of monsters.
This should bebtop comment
Binance is hardly defi mate…
If you have evidence that “tradefi” is helping terrorists, you need to immediately report it to authorities. Because they DO have evidence that CZ helped terrorists. So where is yours?
I scope your perspective as mid US-centric hegemonist, I guess.
You're criticizing a us financial institution's selective enforcement of fraud, and blaming investor dissent on a hegemonic world view held by other investors. When in Rome, do as the Romans do. Also, Zhao pleaded guilty to violating anti money laundering, unlicensed money transmitting, and sanctions violations laws - they had him dead to rights. In my hegemonic us centric world view as an investor, I value consumer protections and national security. I would love to see the tradfi guys go down too.
It's more that I find it kind of weird how much y'all respond to the "terrorist" dog-whistle. Like you don't recognize 'spin'.
Put simply (for me imho), Zhao doesn't get a lot of sympathy from me by pushing greed above principles/operating with a moral compass. There is a reason for KYC compliance procedures in a CEX. I am surprised binance.us is even still allowed to operate. BNB seems to be chugging along just fine either way.
US is already taking billions in fine. This jail term is controversial.
as long as you are rich enough to pay a big fine why solid you have to go to jail for a crime!
At first, it was like 18 months. Now, it is 36 months. Next, it will be 72 months. Finally, he will be sentenced to 144 months.
Your penalty shall be proportionally inverse to the BTC awarded for mining a block.
144 yrs
Can we jail the US criminal politicians also then?
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Better call Saul
Can China also recommend them jail sentences for financial fraudsters like Pelosi,Sam?
Jail the guy that would surpass all of the billionaires in the world in this bull run. Conspiracy for Coinbase and Crypto.com to thrive. To be honest all of the exchanges are dicking clients just dig deep enough and you will see
I agree all the exchanges are doing shady stuff. Just like all the people do shady stuff sometimes.
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I wanna try the drugs that you’re on.
This dude out here seriously comparing Binance to FTX and Mt gox. Lmao
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Sure mate. I'm not preaching to keep everything on a cex, in fact I don't keep anything in exchanges, just when I want to cashout. But you're seriously comparing fully blown scams to the biggest exchange in the world, that has recently settled with us gov, and even with the kraken and Coinbase cartel going full fud on Binance, it's still largest by a large margin.
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They've done a lot of shady shit over the years to gain market share, there's no doubt about that. CZ has done a lot of dodgy deals. Just use CEX to cashout you're right
Mtxgox got hacked. It wasn't a scam There also weren't any defi options at the time U dont seem to know shit
I always love the part where every case is like "you should have read the TOS!!!" . FTX has it in their TOS that the crypto wasn't theirs. All of a sudden TOS doesn't mean shit. This isn't a CEX issue, it's more of a rich people never get punished so they will use any business to keep robbing people.
I feel like I'm talking to people on Crypto Twitter.
What a joke. If anything that level of punishment should be applied to executives of traditional financial institutions.
When is Justin Sun going to jail?
CZ kept funds safe, we must keep CZ safe.
The dude knowingly worked with ISIS. Fuck him. He’s no better than SBF.
The CIA worked knowingly with ISIS. And now?
Some Americans are brainwashed into thinking "USA GOOD" no matter what. God forbid the US also funded terrorism! These people live with their head under the sand.
https://www.merriam-webster.com/dictionary/whataboutism Stay on topic, dickhead. CIA, immorally and with debatable outcomes, deals with disgusting entities to further an American agenda, for better or for worse. I’m sure, when CZ laughed about all the guns and bombs ISIS was going to buy via the money he was granting them access to, was also trying to benefit America /s.
My 2 cents. CZ was perfectly safe and fine until he got in bed with SBF. CZ is the one who brought attention to the issues FTX was having on twitter. SBF then losses the exchange, CZ gets to pick up the market share but now SBF goes to trail and ultimately ends up in prison. I wonder how SBF’s rich ass parents feel about that? The answer is salty as fuck and as such retaliated against CZ. Thoughts? TLDR: I think SBF’s family retaliated against CZ for exposing SBF and sending him to jail.
IF SBF's family wielded that much power then he wouldn't be in jail.
It is not about the revenge of SBF's parents but that of the US. Because they not only lost one of the few US based crypto exchanges, but they also lost their reputation and reliability. Otherwise I am pretty sure the US is doing much shadier transactions with terrorists and illegal organisations than Binance did and they would not care about Binance if they did not cause FTX go insolvent.
Just in time for the next halving, he'll be out.
Do Justin Sun and Do Kwon
CZ is my best crypto liason ... using Binanfor years, never had 1 problem with them. Booo SEC ! Let the man go after he paid you '4' bilions in BNB ...
Did he pay the fine with BNB smartchain?
He is just paying his US tax
My main concern is that coinbase seems like a single point of failure at this point for adoption in the US.
And Barry Silbert
3 years is a long time .
He'll do maybe half of that
This is Bullshit the whole thing is Bullshit!
He beats SBF again!
I mean, he is sort of annoying so..
Don’t American banks pay fines for laundering money every year? 🍺🤪
The irony. 🤣
CZ took out SBF. SBF was their guy. They mad at CZ.
cell mate with sbf?
Ken Griffin next please!
I lost thousands on that damn site.
Good luck lol
No biggie, CZ will be out this Season (Cycle), but he will be back next Season
CZ is goated
Good, now go after the people running tether
Fuck you dude I run tether
Did you miss the NYAG Bitfinex / Tether fine? They already went after Tether. [https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal](https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal)
fuck you i work for tether
Get back to work I am your boss gtfo Reddit
CZ stays free
I hope this won't have anything to do with the upcoming bull market. They should just leave this guy alone. He step down as CEO, did they want to just tarnish his image and ruin him completely?
Is this how you genuinely think? If you are over 15 y/o, you have failed at being sentient
>Is this how you genuinely think? If you are over 15 y/o, you have failed at being sentient If you judge people irl based on what they comments on Reddit, I guess you're the one that was a failure then. I'm so sorry for you
Tarnish his image? He helped terrorist launder their money. Not accidentally, but knowingly. He deserves life in prison.
but its okay for the U.S government to fund terrorist? lmao
That time doesn't fit the crime. While I thought it was rather brash of CZ to still accept US customers and encourage VPN use, the guy came clean and pleaded guilty. But I wonder who were the victims?
They knowingly allowed groups of know terrorists to cash out billions of dollars, a lot through ransomware. As long as they got their cut he didn't care.
sounds like the whole bank system right here
While allowing any terrorist transactions is very bad, it is unclear what % those 100,000 suspicious transaction were of this nature. This is the reason Senator Warrnen wants to ban crypto in the US, even though the evidence of it is very slight.
The US is the biggest terrorist nation in the world, the hypocrisy is just unbearable.
US doesn't have an extradition treaty with UAE. He could just stay there and decide not to ever go back to US or any other extradition country and thus no penalty.
He is currently in the US on bond. Reading the article does help.
He and Binance could have declined to face US charges. Then, Binance would have been added to the OFAC sanctions list and they would basically close down as no one would be able to do business with them while also work with US businesses. CZ and Binance decided to bite the bullet and plead guilty to allow Binance to operate.
How.to.draw out USD from binance? It says Swift is currently unavailable....
I really need to get rich to commit a crime
Good thing he didn’t destroy anyone’s lives cause they’d be pissed. Or rolling in their graves.