However, despite the settlement, Changpeng Zhao is still facing separate investigations relating to money laundering, and he is currently prohibited from leaving the United States. If found guilty, he could potentially face a prison sentence of up to 18 months.
In its statement, the court found that both Changpeng Zhao and Binance had violated the Commodity Exchange Act and the CFTC, and imposed a civil penalty of $150 million on Zhao. Additionally, Binance is required to return $1.35 billion in wrongfully received transaction fees and pay a fine of $1.35 billion.
The court also issued a separate ruling imposing a $1.5 million fine on former Binance Chief Compliance Officer Samuel Lim. Lim is accused of aiding and abetting Binance in violating regulatory standards and intentionally evading and circumventing US laws by engaging in exchange activities outside of the United States.
As part of the settlement, Changpeng Zhao and Binance have agreed to enhance customer identification and anti-money laundering measures. Furthermore, the exchange is obligated to establish a formalized corporate governance structure, including a board of directors with independent members and an audit committee. Binance has stated its intention to form a board of directors as soon as possible, according to co-founder Yi He.