Binance guilty plea and US agency resolutions (2023)
- Resolution type
- Guilty pleas by Binance and Zhao (DOJ), Treasury settlements (FinCEN and OFAC), and a CFTC court order 1,2 3
- Agencies
- DOJ Criminal Division, National Security Division and U.S. Attorney's Office for the Western District of Washington, IRS Criminal Investigation, FinCEN, OFAC and CFTC 1,2 3
- DOJ total
- US$4,316,126,163, made up of US$2,510,650,588 forfeiture and a US$1,805,475,575 criminal fine 1
- Credits
- About US$1.8 billion credited toward the CFTC, FinCEN and OFAC resolutions, per DOJ 1
- FinCEN
- US$3.4 billion civil money penalty, with a further US$150 million suspended 2
- OFAC
- US$968 million 2
- CFTC
- US$1.35 billion disgorgement and US$1.35 billion penalty for Binance, US$150 million penalty for Zhao 3
- Charges
- Conspiracy to violate the Bank Secrecy Act, failure to register as a money transmitting business, and violating the International Emergency Economic Powers Act 1,4
The pleas
DOJ said Binance Holdings Limited pleaded guilty to conspiracy to violate the Bank Secrecy Act, failure to register as a money transmitting business and violating the International Emergency Economic Powers Act 1,4. The case was brought by the Criminal Division's Money Laundering and Asset Recovery Section, the National Security Division and the U.S. Attorney's Office for the Western District of Washington 4. DOJ said IRS Criminal Investigation investigated the case 1.
Changpeng Zhao, a Canadian national, pleaded guilty to failing to maintain an effective anti-money laundering programme in violation of the Bank Secrecy Act, and resigned as chief executive 1. Attorney General Merrick Garland said "using new technology to break the law does not make you a disruptor, it makes you a criminal" 1.
What DOJ and Treasury say Binance admitted
DOJ said Binance never filed a suspicious activity report with FinCEN 1. It said US users generated more than US$1.6 billion in profit for Binance between August 2017 and October 2022 1. DOJ said Binance willfully caused more than US$898 million in trades between US users and users ordinarily resident in Iran between January 2018 and May 2022 1.
DOJ said Zhao admitted he understood that Binance served US users and had to register with FinCEN 1. DOJ quoted him telling employees it was "better to ask for forgiveness than permission" 1.
Treasury said "Binance admits that it willfully failed to establish, implement, and maintain an effective anti-money laundering program" 2. Treasury said Binance executed more than 1.67 million virtual currency trades between US persons and users in sanctioned jurisdictions or blocked persons between August 2017 and October 2022 2.
The amounts
DOJ said about US$1.8 billion of its total is credited toward the CFTC, FinCEN and OFAC resolutions 1. The agency figures in the table are not additive for that reason. DOJ said the criminal penalty reflects a 20% reduction off the bottom of the Sentencing Guidelines fine range 1. Binance did not make a voluntary disclosure and received partial cooperation credit, per DOJ 1.
The CFTC announced on 18 December 2023 that the U.S. District Court for the Northern District of Illinois had entered its order 3. The CFTC release says the court found that Zhao and Binance violated the Commodity Exchange Act and CFTC regulations 3.
Zhao's sentence and pardon
The DOJ Office of the Pardon Attorney lists Zhao's sentence as "Four months' imprisonment, $50,000,000 fine (April 30, 2024)" for failure to maintain an effective anti-money laundering programme in the Western District of Washington 5. As reported by Brady Dale for Axios, U.S. District Judge Richard A. Jones imposed the sentence in Seattle, and prosecutors had sought three years 6.
The Pardon Attorney's list of clemency grants by President Donald J. Trump records a pardon for Zhao granted on 21 October 2025 5. The list entry refers to Zhao and not to Binance Holdings Limited 5.
Status
Binance agreed to an independent compliance monitor for three years under the DOJ resolution 1. The FinCEN settlement imposes a five-year monitorship and gives Treasury access to Binance's books, records and systems for five years 2. The DOJ release page carries a note that it was updated on 6 February 2025 1. This page has not confirmed Binance's corporate sentencing date or any change to the monitorships from a primary source, so it does not report them.
Common questions
Did Binance plead guilty?
Yes. Binance Holdings Limited pleaded guilty to Bank Secrecy Act, money transmitting and IEEPA charges on 21 November 2023 1,4.
How much did Binance pay?
DOJ announced US$4,316,126,163 in forfeiture and fines, with about US$1.8 billion credited toward the CFTC, FinCEN and OFAC resolutions 1.
Did Changpeng Zhao go to prison?
He was sentenced on 30 April 2024 to four months' imprisonment and a US$50 million fine 5.
Was Changpeng Zhao pardoned?
Yes. The DOJ Office of the Pardon Attorney lists a pardon granted on 21 October 2025 5.
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Sources
- U.S. Department of Justice: Binance and CEO Plead Guilty to Federal Charges in $4B Resolution, press release 23-1323 (21 November 2023, updated 6 February 2025)
- U.S. Department of the Treasury: U.S. Treasury Announces Largest Settlements in History with World's Largest Virtual Currency Exchange Binance (21 November 2023)
- Commodity Futures Trading Commission: Federal Court Enters Order Against Binance and Former CEO, Zhao, Concluding CFTC Enforcement Action, release 8837-23 (18 December 2023)
- U.S. Department of Justice, Criminal Division: United States v. Binance Holdings Limited, d/b/a Binance.com, case page
- U.S. Department of Justice, Office of the Pardon Attorney: Clemency Grants by President Donald J. Trump (2025 to present), entry for Changpeng Zhao under 21 October 2025 (accessed 22 October 2026)
- Axios, Brady Dale: report on the sentencing of Changpeng Zhao (30 April 2024)
Related
- Plea agreements and settlements compared
The difference between a guilty plea, a deferred prosecution agreement and a civil settlement in U.S. cases, with Rule 11 and Justice Manual rules.
- How to find a Justice Department settlement
Where to find official DOJ press releases, resolution agreements, court filings on PACER and SEC litigation releases, and what to check in each.
- What a government settlement means
What civil settlements, DPAs, NPAs, plea agreements and SEC orders say about admission of liability or guilt, with the rules that govern each.