Binance Bracing Itself for Fines From US Regulators to Settle ‘Past Conduct’: WSJ

The world’s largest crypto exchange has been under extra scrutiny since the collapse of rival exchange FTX.

AccessTimeIconFeb 16, 2023 at 1:57 a.m. UTC
Updated Feb 16, 2023 at 3:05 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

As U.S. regulators continue to sniff around Binance, the world’s largest crypto exchange is prepared to pay monetary penalties to “make amends” for past regulatory violations, according to The Wall Street Journal.

Binance Chief Strategy Officer Patrick Hillmann told the WSJ on Wednesday that the exchange grew quickly and was not initially aware of the myriad laws and regulations designed to prevent money laundering, sanctions evasion, and corruption.

Because of that, Hillman said Binance expects to face fines – and is “working with regulators to figure out what are the remediations we have to go through now to make amends for [past violations].”

Though regulatory scrutiny on Binance has intensified following its rival FTX’s collapse in November, Binance has been under investigation by the U.S. Attorney’s Office for the Western District of Washington since at least 2018, according to Reuters. The Department of Justice (DOJ) has reportedly sent at least two trading firms subpoenas in recent months, requesting records of their past dealings with Binance US.

Reuters reported in December that federal authorities were still discussing a potential settlement with Binance and assessing whether the evidence they have already collected is sufficient to bring charges against the exchange and several individuals, including CEO Changpeng Zhao.

In his interview with The Journal, Hillman said he expected the outcome of the investigation (he did not name which specific investigation he was referring to) could “likely [be] a fine, could be more … We just don’t know. That is for regulators to decide.”

Hillman declined to estimate the size of the fines or a timeline for when the investigation might be settled, the Journal reported.

However, he added that he was “highly confident and feeling really good about where those discussions are going.”

“It will be a good moment for our company because it allows us to put it behind us,” the WSJ quoted Hillman as saying.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Cheyenne Ligon

Cheyenne Ligon is a CoinDesk news reporter with a focus on crypto regulation and policy. She has no significant crypto holdings.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



Read more about