Binance’s troubles with American justice are far from over. Latest development: the platform’s former director of compliance, Samuel Lim, has just agreed to pay a record fine of $1.5 million as part of a settlement with the Commodity Futures Trading Commission (CFTC). ).
$1.5 million fine for former compliance director
The famous crypto exchange platform Binance continues to pay a high price for its breaches of American regulations.
After agreeing to pay a record fine of $4 billion and forcing its CEO Changpeng Zhao (CZ) to resign and pay $50 million, it is the turn of its former compliance director, Samuel Lim, to suffer. a heavy penalty.
An Illinois court has yet to approve Samuel Lim’s $1.5 million fine for two counts:
- Violation of the law on commodity exchanges, and
- Complicity in Binance’s repeated breaches of this same law.
The Acting Director of the CFTCIan McGinley did not mince his words, denouncing a “ compliance program that was merely a facade, deliberately ineffective“.
According to the American regulatory authority, rather than implementing real internal controls, Binance and its managers created “ makeshift solutions » to knowingly circumvent American law.
“Instead of having a robust compliance system, we see someone producing ‘band-aid solutions’ and ‘creative tools’ to intentionally evade US derivatives laws, while the CEO and CCO have “a robust compliance system.” declared Gretchen Lowe, Deputy Director and Chief Counsel of the CFTC’s Enforcement Division.
Increased pressure on Binance
With this new fine imposed on one of its former senior executives, Binance sees the bill growing ever heavier in its setbacks with the American justice system. Recall that the US Department of Justice demanded a record payment of $4 billion to end the prosecution for fraud and money laundering targeting the platform.
If he hoped to quickly put his legal troubles behind him, the behemoth of crypto exchange platforms still seems far from the end of the tunnel. Other sanctions could follow, targeting former Binance officials or partners in the United States. To be continued!
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