A US court has issued a restraining order against the cryptocurrency exchange Binance and their former CEO, Changpeng “CZ” Zhao. The order requires Binance to pay $2.7 billion and CZ to pay $150 million to the Commodity Futures Trading Commission (CFTC).
According to the CFTC’s announcement on December 18, the Northern District of Illinois court in the United States has approved a previously reached settlement agreement and imposed the enforcement measures set forth by the CFTC in November. This agreement marks the end of the CFTC’s protracted lawsuit against CZ and Binance.
The court determined that CZ and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations. CZ was fined $150 million in civil penalties, and Binance must pay $1.35 billion in unlawful trading fees and $1.35 billion in penalties to the CFTC.
Previously, on November 21, CZ stepped down from his leadership role at Binance in a larger agreement with US regulatory authorities. Zhao also pleaded guilty to some civil and criminal allegations related to anti-money laundering laws.
As part of the agreement, both CZ and Binance committed to implementing measures to ensure compliance with regulations, including the establishment of a formal corporate governance structure, an independent board of directors, a compliance committee, and an audit committee.
The court also issued an order for Binance’s former compliance director, Samuel Lim, to pay a $1.5 million civil penalty for aiding and abetting Binance’s violations and attempting to evade US law.