Good news! Changpeng Zhao, Sam Bankman-Fried’s brother-by-another-mother, just got slapped with a $50 million fine and was forced to resign, while his company, Binance, was fined $4.3 BILLION.
Court papers filed by the government say that Binance chose not to implement anti-money laundering measures, essentially allowing the firm to become a clearinghouse for all manner of illicit financial transactions. Between 2018 and 2022, that led to nearly $900 million in financial transactions that violated sanctions against Iran, the court papers charge.
In June, the Securities and Exchange Commission came after Binance and Coinbase, another crypto exchange, asking Binance to freeze all assets on its U.S. platform and accusing Coinbase of acting as a securities exchange, broker and clearing agency.
The plea deal is the latest victory in the Securities and Exchange Commissions’s effort to rid bad crypto actors from the United States, said Carl Tobias, a law professor at the University of Richmond.
Wait, how do you tell a bad crypto actor from a good one? Is it because the latter doesn’t exist?