• AML
  • Qui Tam
  • SEC
  • CFTC
  • FCPA
  • FAQS
Subscribe
Donate
No Result
View All Result
Whistleblower Network News
The Truth at Any Cost.
Qui Tam, Compliance and Anti-Corruption News.
Whistleblower Network News
No Result
View All Result
Home AML Rewards

Binance’s Historic $4 Billion Settlement Covered Under Multiple Whistleblower Award Programs

Geoff SchwellerbyGeoff Schweller
November 27, 2023
in AML Rewards
Reading Time: 5 mins read
Binance
Share on TwitterShare on FacebookShare on LinkedInEmail

On November 21, U.S. authorities announced that the crypto-exchange Binance and its founder Changpeng Zhao pled guilty to federal charges and agreed to pay $4.3 billion in penalties. The historic settlement resolves investigations by multiple government agencies, including the Department of Justice (DOJ) and Commodity Futures Trading Commission (CFTC), and the underlying violations are covered under multiple U.S. whistleblower award programs. 

Binance and Zhao pled guilty to money laundering, unlicensed money transmitting, sanctions violations, illegally operating a digital asset derivatives exchange, and other violations. In addition to the DOJ and CFTC, the settlement covers charges by the Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and IRS Criminal Investigation (CI).

In its press release, the Treasury Department explains that Binance’s money laundering and sanctions violations involved violations of the Bank Secrecy Act (BSA) and multiple sanctions programs. “The violations include failure to implement programs to prevent and report suspicious transactions with terrorists — including Hamas’ Al-Qassam Brigades, Palestinian Islamic Jihad (PIJ), Al Qaeda, and the Islamic State of Iraq and Syria (ISIS) — ransomware attackers, money launderers, and other criminals, as well as matching trades between U.S. users and those in sanctioned jurisdictions like Iran, North Korea, Syria, and the Crimea region of Ukraine,” the release explains. “By failing to comply with AML and sanctions obligations, Binance enabled a range of illicit actors to transact freely on the platform.”

Register for National Whistleblower Day

“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,” said Secretary of the Treasury Janet L. Yellen. “Today’s historic penalties and monitorship to ensure compliance with U.S. law and regulations mark a milestone for the virtual currency industry. Any institution, wherever located, that wants to reap the benefits of the U.S. financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime, or face the consequences.”

In 2020, Congress established the AML Whistleblower Program, which was later reformed by the AML Whistleblower Improvement Act. The program offers monetary awards and anti-retaliation protections to whistleblowers who report money laundering violations, such as violations of the BSA. Furthermore, the AML Whistleblower Improvement Act expanded the program to cover whistleblowers who report sanctions violations.

Through the AML Whistleblower Program, qualified whistleblowers are entitled to monetary awards of 10-30% of the sanctions collected by the government in the case connected to their whistleblowing. The Treasury Department and FinCEN are currently drafting regulations for the program, though whistleblowers are still eligible for awards in the meantime.

The historic $4.3 billion settlement also resolved charges filed by the CFTC against Binance and Zhao. In its press release, the CFTC explains that it “charged Binance with, among other things, illegally offering and executing commodity derivatives transactions to and for U.S. customers, and accepting funds from those customers, who for most of the relevant period were not required to provide any identity-verifying information before trading on the platform.”

“Binance’s activities undermined the foundation of safe and sound financial markets by intentionally avoiding basic, fundamental obligations that apply to exchanges, all the while collecting approximately $1.35 billion in trading fees from U.S. customers,” said CFTC Chairman Rostin Behnam. “American investors, small and large, have demonstrated eagerness to incorporate digital asset products into their portfolios. It is our duty to ensure that when they do so, the full protections afforded by our regulatory oversight are in place, and that illegal and illicit conduct is swiftly addressed. When, as here, an entity goes even further, deliberately avoiding to employ meaningful access controls, intentionally avoiding knowing customers’ identities, and actively concealing the presence of U.S. customers on its platforms, there is no question that the CFTC will strike hard and aggressively.”

Established in 2010 with the passage of the Dodd-Frank Act, the CFTC Whistleblower Program offers monetary awards to individuals who voluntarily provide information about commodities violations. Qualified CFTC whistleblowers are entitled to monetary awards of 10-30% of the funds collected by the CFTC in the enforcement action connected with their disclosure. 

Furthermore, the Dodd-Frank Act’s related action provisions entitle CFTC whistleblowers to awards based on sanctions collected by other government agencies in instances where a qualified CFTC whistleblower’s disclosure also contributed to the success of the related actions.

As part of their confidentiality protections, the CFTC and FinCEN do not reveal when a whistleblower was involved in the success of the case. If a whistleblower was involved in the Binance case, under either the CFTC or AML whistleblower programs they could be eligible for an award of up to $1.29 billion.

Further Reading:

Binance and CEO Plead Guilty to Federal Charges in $4B Resolution

Binance and Its CEO, Changpeng Zhao, Agree to Pay $2.85 Billion for Willfully Evading U.S. Law, Illegally Operating a Digital Asset Derivatives Exchange, and Other Violations

U.S. Treasury Announces Largest Settlements in History with World’s Largest Virtual Currency Exchange Binance for Violations of U.S. Anti-Money Laundering and Sanctions Laws

Previous Post

CFTC Accepting Whistleblower Award Claims for $20 Million Commodities Ponzi Scheme Case

Next Post

Qui Tam Suit Leads to $45.6 Million False Claims Act Settlement

Geoff Schweller

Geoff Schweller

Geoff Schweller is the Assistant News Editor for Whistleblower Network News. He coordinates news coverage, and also writes about breaking whistleblower news, SEC whistleblowers, IRS whistleblowers, CFTC whistleblowers, and federal employee whistleblowers. Geoff graduated from Hamilton College with a degree in Sociology and minors in French & Francophone Studies and Cinema & New Media Studies.

Next Post
Nursing FCA

Qui Tam Suit Leads to $45.6 Million False Claims Act Settlement

Receive Daily Alerts

Subscribe to receive daily breaking news and legislative developments sent to your inbox.

  • This field is for validation purposes and should be left unchanged.

Most Popular

Advocates Detail Need for SEC Whistleblower Reform

Raytheon Whistleblower Receives $1.5 Million for Alleging Cybersecurity Non-Compliance

Ruling Striking Down Trump Order Targeting Law Firm Seen as Crucial for Whistleblowers

MJH Healthcare Settles Whistleblower Allegations of Postal Rate Fraud for $2 Million

Poll Shows Overwhelming Support for Stronger Whistleblower Laws in Australia, Mirroring Polling in US

Four Whistleblowers Receive $1.3 Million for Alleging Genetic Testing Fraud Scheme

Whistleblower Poll

Whistleblower Poll
Whistleblower Poll

Exclusive Marist Poll: Overwhelming Public Support Among Likely Voters For Increased Whistleblower Protections

byGeoff Schweller
October 6, 2020

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED.
Subscribe to receive breaking whistleblower updates.

  • This field is for validation purposes and should be left unchanged.

About Us

  • About
  • Contact Us
  • Donate
  • Careers

Subscribe

  • Daily Mail
  • Follow us on Twitter
  • YouTube Channel

Contribute

  • Letter to the Editor
  • Submission Guidelines
  • Reprint Guidelines

Your Experience

  • Accessibility Statement
  • Privacy Policy
  • Terms of Use

Help

  • Rules for Whistleblowers
  • Frequently Asked Questions
  • Advertise
Whistleblower Network News

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments. 

Submit an Article

Copyright © 2025, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this website, you understand that there is no attorney-client relationship between you and the Newspaper/Web Site publisher. The Newspaper/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Become a Whistleblower Network News Subscriber

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Subscribe to WNN

Retrieve your password

Please enter your username or email address to reset your password.

Subscribe to WNN
RSVP to National Whistleblower Day 2025! July 30, 2025 on Capitol Hill
RSVP NOW

Add New Playlist

No Result
View All Result
  • Exclusives
  • Government
    • False Claims-Qui Tam
    • Federal Employees
    • Intelligence
  • Corporate
    • CFTC & Commodities
    • Dodd-Frank
    • IRS & Tax
    • SEC & Securities
  • Features
  • Legislation
  • International
    • Foreign Corruption
  • Rewards
  • Whistleblower of the Week
  • Environment & Climate
  • Opinion
  • Editorial
  • Employment
    • Sarbanes-Oxley Whistleblowers
    • Retaliation
    • OSHA
  • Make National Whistleblower Day Permanent
  • Media
    • Podcasts
    • Videos
    • Webinars
    • National Whistleblower Day
  • Whistleblower Poll
  • Whistleblower Resources
    • Frequently Asked Questions
    • Resources for Locating An Attorney
    • The New Whistleblowers Handbook

Copyright © 2024, Whistleblower Network News. All Rights Reserved.

Go to mobile version