Subscribe
‘Enforcement 40’ for 2020
Our Sponsors
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedInBinance Founder Changpeng ‘CZ’ Zhao Isn’t a Flight Risk, His Attorneys Say
The DOJ argued that Zhao could afford to lose the $15 million he put in a trust account and $5 million his guarantors put up. Zhao’s attorneys said this argument ignores the financial commitment he and Binance made. Other DOJ arguments similarly ignore everything Zhao has already done, they said, such as flying to the […]
Binance Penalties Include a Number of Crypto Industry Firsts – WSJ
U.S. regulators’ settlement with the largest cryptocurrency exchange marked a new era in its enforcement efforts in the nascent sector. Some of the penalties imposed on Binance are a first for a cryptocurrency company, with regulators employing powerful measures typically used in the past to rein in major financial institutions. Binance’s penalties include record-breaking civil […]
Sam Bankman-Fried’s Life Behind Bars: Crypto Tips and Paying With Fish – WSJ
Sam Bankman-Fried, convicted of fraud in the meltdown of FTX, has traded in crypto for a new currency: mackerel. The fallen crypto king, who is cooling his heels at Brooklyn’s Metropolitan Detention Center while he awaits sentencing for seven felony offenses, has learned the fundamentals of prison economics while sharing a dormitory with a former […]
Binance Founder Changpeng Zhao Pleads Guilty to Money Laundering Violations – The New York Times
Changpeng Zhao, the founder of Binance, the largest cryptocurrency exchange in the world, pleaded guilty to money laundering violations, the government said on Tuesday, a stunning blow to the most powerful and influential figure in the global crypto industry. Binance itself also pleaded guilty and agreed to pay $4.3 billion in fines and restitution to […]
China Rounds Up 31,000 Suspects in Sweeping ‘Pig-Butchering’ Crackdown – WSJ
For months, China has tried to break up cybercrime syndicates that operate from shadowy compounds across the border in neighboring countries and swindle people around the world. The scammers call the fraud “pig-butchering”: They “fatten” victims by gaining their trust online, convince them to transfer large sums of money and then “butcher” them by absconding […]
Binance to Make ‘Complete Exit’ From U.S., Pay Billions to FinCEN, OFAC on Top of DOJ Settlement
Crypto exchange Binance will leave the U.S., pay billions in fines and appoint a monitor for five years to settle charges with the Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Asset Control (OFAC), the U.S. Treasury Department’s money laundering and sanctions watchdogs, according to press releases shared Tuesday. The exchange will pay $3.4 […]
Binance Founder Changpeng ‘CZ’ Zhao Released on $175M Bond, Will Be Sentenced in February
Binance founder and former CEO Changpeng “CZ” Zhao has been released from custody on a $175 million personal recognizance bond. Zhao pleaded guilty to violating the Bank Secrecy Act in court earlier on Tuesday, after federal officials alleged he directed Binance to allow U.S. customers to use the platform without conducting proper know-your-customer or anti-money […]
Is Binance Big Enough to Survive a $4.3B Fine and Founder CZ’s Ousting?
In many ways, Binance got off easy. It has to pay a massive penalty, yes, but it looks like it has money on the books to survive. Binance will also need to appoint an independent monitor and send compliance reports to the U.S. government. ConsenSys chief lawyer Bill Hughes said this will be a huge […]
US DOJ Seeks More than $4B From Binance to End Criminal Case – Bloomberg
The US Justice Department is seeking more than $4 billion from Binance Holdings Ltd. as part of a proposed resolution of a years-long investigation into the world’s largest cryptocurrency exchange. Negotiations between the Justice Department and Binance include the possibility that its founder Changpeng Zhao would face criminal charges in the US under an agreement […]
Former Needham Police Officer Sentenced for Insider Trading Conspiracy | DOJ
A former Needham police officer was sentenced yesterday for conspiring to trade on inside information about a Massachusetts company’s planned acquisition of a California semiconductor company. David Forte, 60, of Acton, was sentenced by U.S. District Court Judge Allison D. Burroughs to one year of supervised release, with the first six months to be served […]