Changpeng Zhao

On November 21, 2023, Changpeng Zhao pleaded guilty to failing to maintain an effective anti-money laundering program at Binance, in violation of the Bank Secrecy Act. Binance simultaneously pleaded guilty to BSA violations, unlicensed money transmitting, and International Emergency Economic Powers Act (IEEPA) sanctions violations — the largest corporate criminal resolution in U.S. history at that time. Total penalty: $4.316 billion ($2.51B forfeiture + $1.805B criminal fine). CZ was sentenced to four months in federal prison in April 2024 and served the full term at FCI Lompoc I, California. Binance's compliance posture across five years of operation: it never filed a single Suspicious Activity Report with FinCEN. Not one. Binance processed transactions from August 2017 through October 2022 generating $1.6B in profit from U.S. customers — while simultaneously directing those same customers to create offshore entities so Binance could maintain their business without triggering regulatory scrutiny. CZ told his employees it was "better to ask for forgiveness than permission."

• —CZ guilty plea: Bank Secrecy Act — failing to maintain effective AML program. Personal fine: $50M.
• —Binance guilty plea: BSA/AML violations + unlicensed money transmitting + IEEPA sanctions violations.
• —Total criminal penalty: $4,316,126,163 — one of the largest corporate criminal settlements in US history.
• —Binance never filed a single SAR with FinCEN across its entire operating history.
• —Between Aug 2017 and Oct 2022, Binance generated $1.6B in profit from U.S. customers while concealing their presence from regulators.
• —Binance processed $898M in trades between US users and users in sanctioned Iran — in knowing violation of IEEPA.
• —Binance's own internal messages: "we need a banner -- is washing drug money too hard these days -- come to Binance we got cake for you."
• —CZ to employees: "better to ask for forgiveness than permission." Strategy was to "appear compliant" while knowingly violating the law.
• —Binance helped US-based VIP customers register new offshore entities to continue trading while evading detection.
• —AG Merrick Garland: "using new technology to break the law does not make you a disruptor, it makes you a criminal."

FinCEN's investigation — part of the same November 2023 resolution — found that Binance willfully failed to report suspicious transactions associated with four designated terrorist organizations: Hamas's Al-Qassam Brigades, Palestinian Islamic Jihad (PIJ), Al Qaeda, and the Islamic State of Iraq and Syria (ISIS). ISIS was formally designated by the United Nations as having committed genocide against the Yazidi people. Under the Bank Secrecy Act, financial institutions are required to file Suspicious Activity Reports when they process transactions linked to known terrorist organizations. Binance never filed one. Binance's own compliance officer acknowledged the problem in writing — "we see the bad, but we close 2 eyes" — and the institution continued anyway. Treasury Secretary Janet Yellen stated at the time of the settlement: "Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform."

• —Four designated terrorist organizations processed transactions through Binance without any SAR filing: Hamas Al-Qassam Brigades, Palestinian Islamic Jihad, Al Qaeda, ISIS.
• —ISIS committed genocide against the Yazidi people — UN-documented, UN Security Council Resolution 2253.
• —Binance compliance officer acknowledged the problem in writing: "we see the bad, but we close 2 eyes."
• —Zero SARs filed — Binance's stated policy was to not report suspicious activity, per FinCEN's investigation.
• —FinCEN settlement: $3.4B — largest in FinCEN history. OFAC settlement: $968M — largest in OFAC history.
• —Treasury required five-year monitorship; Binance required to fully exit the U.S. market.
• —Treasury Sec Yellen: "Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers."

Beyond the terrorist financing, FinCEN documented three additional categories of criminal actors Binance knowingly enabled. First: North Korea's Lazarus Group — state-sponsored hackers who steal cryptocurrency to fund the DPRK's ballistic missile program — laundered funds through Binance, as documented by Reuters in June 2022 and confirmed by Treasury. Second: at least 24 separate ransomware strains funneled proceeds through Binance, which was described as "one of the largest receivers of ransomware proceeds" — and collected fees on every transaction. Third: websites devoted to selling child sexual abuse materials, including a site called "Dark Scandals," processed transactions through Binance without a single SAR filed. None of this was reported. None of this was stopped. On October 23, 2025, President Donald Trump granted CZ a "full and unconditional Pardon." Trump later told 60 Minutes he had "no idea" who Changpeng Zhao was — and attributed the pardon to hearing it was "a Biden witch hunt." The White House spokesperson stated there were "no identifiable victims." FinCEN's own documents identify the victims.

• —North Korea Lazarus Group: laundered cryptocurrency stolen in state-sponsored cyberattacks to fund DPRK missile program. Documented by Reuters (June 2022); confirmed by Treasury.
• —At least 24 ransomware strains funneled proceeds through Binance — Binance was "one of the largest receivers of ransomware proceeds," per FinCEN.
• —Child sexual abuse material websites including "Dark Scandals" processed transactions through Binance. Zero SARs filed.
• —$780M from Russian darknet market Hydra processed through Binance without reporting.
• —CZ sentenced to four months in federal prison (April 2024); served full term at FCI Lompoc I; released September 27, 2024.
• —Trump pardon October 23, 2025: "full and unconditional" — erased guilty plea and conviction.
• —White House: "no identifiable victims." FinCEN's documents name victims: terror attack survivors, ransomware victims, children.
• —CZ's net worth at time of pardon: over $100 billion. He paid $50M personally. He kept the rest.