Binance and its now former CEO Changpeng 'CZ' Zhao pleaded guilty Tuesday to anti-money laundering and U.S. sanctions violations in a settlement with the U.S. government.
Is this something that is larger than life? Have you seen something like this before? And seen a company come out on the other side? Well, Jen, that's a really good question. So the monitor issue, I would separate and the compliance control separate that from the concept of the penalty number. Um Doj and the various other agencies of a um and, and treasury have used monitors a lot in connection with settlements where the company itself has to plead guilty, right? A corporation doesn't always plead guilty, can't do jail time, all those kinds of things. But when they do, the government takes that very seriously. And so monitors are put into place with a lot of public companies. I mean, if you think about things like, um you know, the, the um you know, anti bribery controls those kinds of things, we see uh monitors put in place in those instances, um healthcare settlements, for example, so that I don't think is particularly unusual. Um What is unusual here for a Cryptocurrency business is the size of this penalty, the size of the penalty as to cz personally, um I, you know, don't have insight into the company's financial condition. But my understanding is that the penalty is one that the company can pay um in every doj settlement uh with other government agencies as well. The company's ability to pay is always a component. Uh That is considered right? The you don't want to be the government that bankrupts a company or puts them completely out of business, uh just through the size of the penalty. So my suspicion is, yes, the company can survive this.