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- According to a recent ruling, Binance will have to pay a total of $2.7 billion in fines.
- CZ will also pay $150 million in fines.
An update has been released on the legal proceedings involving Binance and its former CEO Changpeng Zhao. A court has issued an injunction against the exchange, its former CEO and another key official.
The order outlined the penalties imposed and specified certain operational changes to be implemented within the exchange.
Binance and CZ achieve good figures
On December 18, the U.S. Commodity Futures Trading Commission (CFTC) announced that the United States District Court for the Northern District of Illinois had approved the previously announced settlement.
The court issued a consent order with a permanent injunction, a civil monetary penalty, and equitable damages against Changpeng Zhao (CZ) and Binance.
The court imposed a civil penalty of $150 million on CZ as part of the settlement. Additionally, it required Binance to “waste” $1.35 billion in ill-gotten transaction fees and pay a $1.35 billion fine to the CFTC.
This brought the total fines against the exchange to $2.7 billion. Samuel Lim, former Chief Compliance Officer of Binance, must also pay a civil penalty of $1.5 million.
The order further directed the exchange and CZ to confirm that the exchange will implement a corporate governance structure. This structure includes the establishment of a Board of Directors with independent members, a Compliance Committee and an Audit Committee.
The CFTC initiated legal action against CZ and Binance on March 27. The lawsuit accused them of circumventing federal law and operating an illegal derivatives exchange.
On November 21, CZ agreed to resign as CEO as part of a broader settlement with the US Department of Justice, the Treasury Department and the CFTC. On the same day, CZ pleaded guilty to several civil charges and one criminal charge.
Binance retains the first place among exchanges
According to CoinMarketCap data, Binance continued to maintain its position as the largest global exchange.
The chart shows that Binance had a trading volume of over $15 billion in the last 24 hours. By comparison, the next largest exchange, Coinbase, lagged significantly.
At the time of writing, it had a 24-hour trading volume of approximately $2.3 billion. This showed the significant gap between the two platforms.
BNB maintains a normal trend
The daily timeframe chart for Binance Coin (BNB) showed a relatively normal trend. This was mainly the result of the setback experienced when the news about CZ came out on November 21.
How much are 1,10,100 BNBs worth today?
By the end of trading on December 18, BNB had posted a positive performance, with its value up more than 1%. Moreover, it was trading around $241.
At the time of writing, the stock was trading around $245, reflecting a further upside of around 1.7%. The trend analysis shows that BNB has been able to extricate itself from the ongoing legal procedures for the time being.
Source: TradingView