Binance and CZ have reached a settlement with the CFTC, which has been approved by federal judge Manish Suresh Shah of the Northern District of Illinois.
A strict penalty
Binance will pay $2.7b under the settlement, this includes the return of $1.35b collected from US citizens in trading fees and an equal amount to the CFTC as a fine. CZ will pay a $150 million fine as part of the resolution. Former CCO Samuel Lim will also pay the fine of $150 million.
Binance to Work Like a Company
The new agreement orders BINANCE to implement a corporate structure for governance instead of only having a CEO. Under this, Binance will have to form a board of directors with independent members; additionally, necessary committees for compliance and audit will also have to be formed.
This new settlement has shown the strength of regulators in the US market; a heavy fine is a warning for those who dare to avoid their rules, and the order of governance also gives a hint that if you want to do business in the US, you also need to provide jobs there.
