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{"actor":"system:backfill","investigation_id":"ee0b172d-1fd3-47c7-812a-115748f8108a","kind":"publish","page_slug":"binance","published_at":"2026-05-14T06:02:21.907Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Binance","sections":[{"content":"Binance was founded in 2017 by Changpeng Zhao, a Canadian-Chinese entrepreneur who previously worked at Bloomberg Tradebook building futures trading systems and served as CTO of OKCoin. Zhao launched Binance through an initial coin offering (ICO) in July 2017 that reportedly raised between $5 million and $15 million — the exact figure is disputed, with a Forbes investigation finding the actual amount was below $5 million, contrary to the $15 million figure publicized by Zhao. The exchange grew rapidly, becoming the world's largest cryptocurrency exchange by trading volume within six months of launch. Binance's native token, BNB (Binance Coin), was issued as an ERC-20 token on Ethereum before migrating to BNB Chain in 2019. The exchange operated for years without a fixed headquarters, describing itself as 'decentralized by design,' before securing full regulatory licenses in Abu Dhabi Global Market (ADGM) in December 2025.","heading":"Company Overview and Founding","severity":"low","sources":[{"credibility":2,"name":"Changpeng Zhao - Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/Changpeng_Zhao"},{"credibility":2,"name":"Binance ICO raised less than US$5M - Forbes via Yahoo Finance","type":"news_article","url":"https://finance.yahoo.com/news/binance-ico-raised-less-us-090836652.html"},{"credibility":1,"name":"Binance Becomes First Crypto Exchange to Secure Global ADGM License","type":"regulatory","url":"https://www.adgm.com/media/announcements/binance-becomes-first-crypto-exchange-to-secure-a-global-license-under-adgm-framework-setting-a-new-standard-in-digital-asset-regulation"}]},{"content":"On November 21, 2023, the U.S. Department of Justice announced that Binance Holdings Limited pleaded guilty to three federal criminal charges: conspiracy to violate the Bank Secrecy Act (BSA) by failing to maintain an effective anti-money laundering (AML) program; conducting an unlicensed money services business; and willfully violating the International Emergency Economic Powers Act (IEEPA). The company agreed to pay $4.3 billion in combined penalties across multiple agencies in what DOJ described as one of the largest corporate financial penalties in U.S. history. FinCEN assessed a civil monetary penalty of $3.4 billion and imposed a five-year compliance monitorship. OFAC assessed a separate penalty of $968 million for sanctions violations. Binance admitted that between January 2018 and May 2022, it processed over $898 million in trades between U.S. and Iranian users, and facilitated more than 1.5 million virtual currency transactions totaling nearly $900 million involving sanctioned entities including Hamas's Qassam Brigades, al-Qaeda, Palestinian Islamic Jihad, and the Islamic State. The settlement required Binance to appoint an independent compliance monitor, offboard existing U.S. users from Binance.com, and implement certified remedial compliance measures.","heading":"DOJ, FinCEN, and OFAC Settlement — $4.3 Billion Penalty (2023)","severity":"critical","sources":[{"credibility":1,"name":"Binance and CEO Plead Guilty to Federal Charges — DOJ Press Release","type":"regulatory","url":"https://www.justice.gov/archives/opa/pr/binance-and-ceo-plead-guilty-federal-charges-4b-resolution"},{"credibility":1,"name":"Binance and Its CEO Agree to Pay $2.85 Billion — CFTC Press Release","type":"regulatory","url":"https://www.cftc.gov/PressRoom/PressReleases/8825-23"},{"credibility":1,"name":"U.S. Treasury Announces Largest Settlements in History with Binance","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/jy1925"},{"credibility":2,"name":"Binance and CEO CZ Plead Guilty — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2023/11/21/binance-to-settle-charges-with-us-doj-source"},{"credibility":1,"name":"Binance CEO CZ to Step Down, Pleads Guilty — Axios","type":"news_article","url":"https://www.axios.com/2023/11/21/binance-cz-step-down-settlement-doj"}]},{"content":"The CFTC's consent order, issued simultaneously with the DOJ settlement on November 21, 2023, found that Binance operated an illegal digital asset derivatives exchange without registration, willfully evaded the Commodity Exchange Act (CEA), and functioned as an unregistered futures commission merchant (FCM). The CFTC found that Binance had offered and executed commodity derivatives transactions to U.S. persons beginning in July 2019, while intentionally maintaining weak compliance systems to conceal this activity. Binance collected approximately $1.35 billion in trading fees from U.S. customers during this period. The consent order required Binance to pay $1.35 billion in disgorgement and a further $1.35 billion civil monetary penalty, plus CZ personally paid $150 million. The order also permanently enjoined Binance from willfully evading the CEA and from operating unregistered facilities, and required elimination of compliance-circumventing 'sub-accounts' used by high-value clients.","heading":"CFTC Enforcement Action","severity":"critical","sources":[{"credibility":1,"name":"CFTC Press Release: Binance and CZ Agree to Pay $2.85 Billion","type":"regulatory","url":"https://www.cftc.gov/PressRoom/PressReleases/8825-23"},{"credibility":2,"name":"Binance, CZ Handing Over $1.35B Fine in CFTC Settlement — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2023/11/21/binance-changpeng-cz-zhao-to-pay-285b-fine-in-cftc-settlement"}]},{"content":"On June 5, 2023, the SEC filed a civil lawsuit in the U.S. District Court for the District of Columbia, bringing 13 charges against Binance Holdings Limited, BAM Trading Services Inc. (Binance.US), BAM Management US Holdings Inc., and founder Changpeng Zhao. The charges alleged operating unregistered national securities exchanges, broker-dealers, and clearing agencies; the unregistered offer and sale of BNB, BUSD, and related crypto products; and misleading U.S. customers about the restriction of their access to Binance.com. The SEC alleged that Zhao and Binance secretly allowed high-value U.S. customers to continue trading on the global platform while publicly representing otherwise, and that Sigma Chain — a trading firm owned by CZ — engaged in alleged wash trading to inflate reported volumes on Binance.US. In February 2025, the SEC and Binance agreed to pause the litigation. On May 29, 2025, under SEC Chairman Paul Atkins and the Trump administration, the SEC filed to dismiss the lawsuit with prejudice, ending the enforcement action. Binance publicly thanked the Trump administration for the dismissal.","heading":"SEC Lawsuit: 13 Charges (2023–2025)","severity":"high","sources":[{"credibility":1,"name":"SEC Files 13 Charges Against Binance Entities and CZ — SEC.gov","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-101"},{"credibility":1,"name":"SEC Sues Binance and CEO CZ for U.S. Securities Violations — CNBC","type":"news_article","url":"https://www.cnbc.com/2023/06/05/sec-sues-binance-and-ceo-changpeng-zhao-for-us-securities-violations.html"},{"credibility":2,"name":"SEC Files to Dismiss Long-Running Lawsuit Against Binance — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2025/05/29/sec-files-to-dismiss-regulators-long-running-lawsuit-against-binance"},{"credibility":1,"name":"SEC Drops Binance Lawsuit — CNBC","type":"news_article","url":"https://www.cnbc.com/2025/05/29/sec-drops-binance-lawsuit-ending-one-of-last-remaining-crypto-actions.html"},{"credibility":1,"name":"Binance Scores Big Win After SEC Agrees to Drop Lawsuit — Fortune","type":"news_article","url":"https://fortune.com/crypto/2025/05/29/binance-sec-lawsuit-paul-atkins-donald-trump/"}]},{"content":"Changpeng Zhao personally pleaded guilty in November 2023 to one count of violating the Bank Secrecy Act by failing to maintain an effective AML program at Binance. He agreed to pay a $50 million personal fine and resign as CEO. On April 30, 2024, U.S. District Judge Richard Jones in Seattle sentenced Zhao to four months in federal prison, rejecting prosecutors' request for a three-year term. Zhao reported to a low-security federal facility in California on June 3, 2024, and was released on September 27, 2024. On October 23, 2025, President Donald Trump granted Zhao a full presidential pardon. The White House characterized the prosecution as a Biden administration 'war on cryptocurrency.' The pardon drew immediate bipartisan criticism from members of Congress, given reported financial ties between the Trump family's World Liberty Financial crypto venture and Binance. Trump claimed in a subsequent 60 Minutes interview that he did not know who Zhao was, which drew further scrutiny given the documented connections.","heading":"CZ Guilty Plea, Sentencing, and Presidential Pardon","severity":"high","sources":[{"credibility":1,"name":"Binance Founder CZ Sentenced to 4 Months in Prison — CNBC","type":"news_article","url":"https://www.cnbc.com/2024/04/30/binance-founder-changpeng-zhao-cz-sentenced-to-four-months-in-prison-.html"},{"credibility":2,"name":"Former Binance CEO CZ Begins 4-Month Prison Sentence in California — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2024/06/03/former-binance-ceo-cz-begins-4-month-prison-sentence-in-california"},{"credibility":1,"name":"Trump Pardons Binance Founder CZ — CNBC","type":"news_article","url":"https://www.cnbc.com/2025/10/23/trump-pardons-binance-founder-cz-zhao.html"},{"credibility":1,"name":"Trump Pardons Jailed Binance Founder Who Supported Trump Family Crypto Business — NPR","type":"news_article","url":"https://www.npr.org/2025/10/24/nx-s1-5583983/trump-pardons-jailed-binance-founder-who-supported-trump-family-crypto-business"},{"credibility":1,"name":"Casten, 27 House Dems Condemn Pardon of Binance Founder","type":"official","url":"https://casten.house.gov/media/press-releases/casten-27-house-dems-condemn-pardon-of-binance-founder"},{"credibility":1,"name":"Former Binance CEO CZ Sentenced to Four Months — Al Jazeera","type":"news_article","url":"https://www.aljazeera.com/economy/2024/4/30/former-binance-ceo-cz-sentenced-to-four-months"}]},{"content":"The 2023 DOJ settlement disclosed that Binance processed transactions for Hamas's Qassam Brigades, Palestinian Islamic Jihad, al-Qaeda, and ISIS, in violation of U.S. sanctions law. In November 2025, 306 families of Americans killed or injured in the October 7, 2023 Hamas attacks filed suit in U.S. District Court in North Dakota against Binance, CZ, and executive Guangying Chen under the Justice Against Sponsors of Terrorism Act. The complaint alleged that Binance 'knowingly' facilitated over $1 billion in transactions to wallets controlled by Hamas, Hezbollah, the IRGC, and Palestinian Islamic Jihad. In March 2026, the U.S. Department of Justice opened a new investigation into whether Iran used Binance to circumvent U.S. sanctions, with Fortune reporting that over $1.7 billion was transferred from Binance accounts to Iran-linked entities. U.S. Senator Richard Blumenthal opened a formal congressional inquiry into the matter in April 2026. The U.S. Treasury separately sent Binance a letter tightening pressure on compliance monitors regarding potential ongoing sanctions violations as of May 2026. Binance disputed media coverage as inaccurate.","heading":"Terrorist Financing and Ongoing Sanctions Exposure","severity":"critical","sources":[{"credibility":1,"name":"U.S. Treasury: Largest Settlements in History with Binance for AML and Sanctions Violations","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/jy1925"},{"credibility":2,"name":"Binance Sued by Oct. 7 Hamas Attack Victims — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2025/11/25/oct-7-hamas-attack-victims-sue-binance-for-damages"},{"credibility":1,"name":"Binance Sued by Hamas Victims Under Anti-Terrorism Law — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2025-11-24/binance-faces-lawsuit-by-hamas-victims-under-anti-terrorism-law"},{"credibility":2,"name":"US Justice Department Digs Into Iran's Sanctions Evasion via Binance — Euronews","type":"news_article","url":"https://www.euronews.com/business/2026/03/11/us-justice-department-digs-into-irans-sanctions-evasion-via-binance"},{"credibility":1,"name":"Blumenthal Opens Inquiry After Reporting Reveals $1.7B in Money Laundering to Iran Proxies — U.S. Senate","type":"official","url":"https://www.blumenthal.senate.gov/newsroom/press/release/blumenthal-opens-inquiry-after-new-reporting-reveals-binance-allowed-17-billion-in-money-laundering-to-iran-proxies-and-russias-shadow-fleet"},{"credibility":2,"name":"DOJ Investigates Iran's Alleged Use of Binance — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/03/11/binance-sues-wall-street-journal-as-newspaper-says-u-s-dept-of-justice-is-investigating-iran-transactions"}]},{"content":"Binance has experienced two significant security incidents. In May 2019, hackers stole 7,074 BTC (approximately $40.7 million) in a single transaction from Binance's hot wallet by exploiting phishing attacks, malware, and compromised API keys and 2FA codes. The attack was sophisticated, with the hackers having accumulated access credentials over an extended period before executing a single large withdrawal that passed existing automated security checks. Binance covered losses through its Secure Asset Fund for Users (SAFU) and stated no user funds were lost. In October 2022, attackers exploited a cryptographic vulnerability in the BSC Token Hub cross-chain bridge connecting BNB Beacon Chain and BNB Smart Chain, forging proofs to mint approximately 2 million BNB tokens valued at roughly $570 million. Binance coordinated with network validators to halt the BNB Chain, limiting unrecovered losses to approximately $100 million. Approximately $7 million was additionally frozen by Tether blacklisting the attacker's address. In August 2019, a separate incident involved KYC (Know Your Customer) data belonging to up to 60,000 users allegedly leaking from a third-party vendor, with a blackmailer demanding 300 BTC (approximately $3.5 million). Binance confirmed some leaked images matched actual accounts, though others showed signs of manipulation.","heading":"Security Incidents","severity":"high","sources":[{"credibility":2,"name":"Hackers Steal $40.7 Million in Bitcoin From Binance — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2019/05/07/hackers-steal-407-million-in-bitcoin-from-crypto-exchange-binance"},{"credibility":1,"name":"Hackers Steal $40M Worth of Bitcoin From Binance — CNN Business","type":"news_article","url":"https://edition.cnn.com/2019/05/08/tech/bitcoin-binance-hack/index.html"},{"credibility":1,"name":"Binance Hit by $100M Blockchain Bridge Hack — TechCrunch","type":"news_article","url":"https://techcrunch.com/2022/10/07/blockchain-bridge-hack/"},{"credibility":1,"name":"$570M Worth of Binance's BNB Token Stolen — CNBC","type":"news_article","url":"https://www.cnbc.com/2022/10/07/more-than-100-million-worth-of-binances-bnb-token-stolen-in-another-major-crypto-hack.html"},{"credibility":2,"name":"Binance Confirms Hacker Obtained KYC Data from 3rd-Party Vendor — The Hacker News","type":"news_article","url":"https://thehackernews.com/2019/08/binance-kyc-data-leak_26.html"}]},{"content":"Binance USD (BUSD) was a U.S. dollar-pegged stablecoin issued by Paxos Trust Company under license from Binance. In February 2023, the New York Department of Financial Services (NYDFS) ordered Paxos to cease minting new BUSD tokens, citing unresolved issues related to Paxos's oversight of its relationship with Binance. Simultaneously, the SEC issued a Wells notice to Paxos, indicating it intended to bring enforcement action alleging BUSD was an unregistered security — a characterization Paxos disputed. Paxos halted BUSD issuance on February 21, 2023. Binance announced it would gradually end support for BUSD products in August 2023, and formally ceased support on December 15, 2023. In July 2024, the SEC informed Paxos that it would not recommend an enforcement action relating to BUSD, effectively dropping the threatened suit more than 17 months after the Wells notice. At its peak, BUSD had been the third-largest stablecoin by market capitalization.","heading":"BUSD Stablecoin Shutdown","severity":"medium","sources":[{"credibility":2,"name":"Paxos to Stop Minting BUSD Following Regulatory Action — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2023/02/13/paxos-to-stop-minting-stablecoin-busd-following-regulatory-action"},{"credibility":1,"name":"BUSD: US Regulator Orders Paxos to Halt New Issues of Binance-Branded Stablecoin — CNN","type":"news_article","url":"https://www.cnn.com/2023/02/14/investing/paxos-binance-busd-halt-order-us-intl-hnk/index.html"},{"credibility":1,"name":"Crypto Firm Paxos to Face SEC Charges — CNBC","type":"news_article","url":"https://www.cnbc.com/2023/02/13/paxos-ordered-to-cease-minting-binance-stablecoin-by-new-york-regulator.html"},{"credibility":1,"name":"SEC Drops Key Stablecoin Investigation Into Paxos — Fortune","type":"news_article","url":"https://fortune.com/crypto/2024/07/11/sec-busd-gary-gensler-paxos-stablecoin-binance/"}]},{"content":"On November 6, 2022, CZ publicly announced via Twitter that Binance would liquidate its approximately $580 million holding of FTT (FTX's native token), citing a CoinDesk report about the composition of Alameda Research's balance sheet. The announcement triggered a bank run, with approximately $6 billion withdrawn from FTX over 72 hours. On November 8, Binance signed a non-binding letter of intent to acquire FTX but withdrew the following day after a preliminary due diligence review. FTX filed for bankruptcy on November 11, 2022. Former Alameda Research CEO Caroline Ellison testified in subsequent proceedings that CZ's tweet 'contributed' to FTX's collapse, though analysts have debated whether the underlying insolvency was the primary cause. Binance denied it triggered the meltdown, arguing that 'no healthy business can be destroyed by a tweet.' Binance's trading volume reportedly increased approximately 30% in the aftermath of FTX's collapse.","heading":"Role in FTX Collapse","severity":"medium","sources":[{"credibility":1,"name":"Binance's CZ Calls FTX's SBF a 'Fraudster' in Tweet Storm — Fortune","type":"news_article","url":"https://fortune.com/2022/12/06/binance-cz-speaks-out-tweets-sbf-ftx-media-manipulated/"},{"credibility":2,"name":"Changpeng Zhao's Tweet 'Contributed' to Collapse of FTX — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/changpeng-zhao-tweet-ftx-collapse-caroline-ellison"},{"credibility":2,"name":"Binance Rejects Claims It Triggered FTX Meltdown With CZ Tweet — FinanceFeeds","type":"news_article","url":"https://financefeeds.com/binance-rejects-claims-it-triggered-ftx-meltdown-with-cz-tweet/"}]},{"content":"In June 2023, the SEC's lawsuit against Binance alleged that Sigma Chain AG — a trading firm owned by CZ — engaged in wash trading on Binance.US from at least September 2019 through June 2022, artificially inflating reported trading volumes. In May 2024, the Wall Street Journal reported that Binance fired the head of its market surveillance team after he submitted an internal report alleging that VIP client DWF Labs had conducted approximately $300 million in wash trades in 2023 on the Binance platform. Binance stated the employee was dismissed after an inquiry found allegations against the client were not 'fully substantiated.' Separately, Binance's internal investigators had found evidence that multiple high-value VIP clients — those trading over $100 million per month — were engaging in pump-and-dump schemes and wash trading prohibited by Binance's own terms of service. DWF Labs denied all allegations. The whistleblower dismissal allegation has not been adjudicated in court and Binance disputes the characterization.","heading":"Market Manipulation and Whistleblower Allegations","severity":"high","sources":[{"credibility":2,"name":"Binance Fired Investigator Who Uncovered Market Manipulation at DWF Labs — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2024/05/09/binance-fired-investigator-who-uncovered-market-manipulation-at-client-dwf-labs-wsj"},{"credibility":2,"name":"Binance Accused of Firing Whistleblower for Internal Market Manipulation Report — CryptoSlate","type":"news_article","url":"https://cryptoslate.com/binance-accused-of-firing-whistleblower-for-internal-market-manipulation-report/"},{"credibility":1,"name":"Latest Binance Charges: Inside the SEC's Wash-Trading Allegations — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2023-06-05/latest-binance-charges-inside-the-sec-s-wash-trading-allegations"}]},{"content":"In February 2024, Binance's Head of Financial Crime Compliance, Tigran Gambaryan (a former U.S. IRS Criminal Investigation special agent), and a second Binance executive, Nadeem Anjarwalla, traveled to Abuja, Nigeria to discuss Binance's operations in the country. Nigerian authorities detained both men and charged them with money laundering. Anjarwalla subsequently escaped custody; Gambaryan, a U.S. citizen, was denied bail and held at Kuje Prison. Over eight months of detention, Gambaryan contracted malaria and pneumonia and suffered a herniated disc, with his health visibly deteriorating. He was wheeled into court on a wheelchair in July 2024. Binance's CEO Richard Teng publicly called for Gambaryan's release. The charges against Gambaryan were dropped in October 2024, and he was released and allowed to seek medical treatment abroad. He later publicly described the detention as the Nigerian government using him as a 'hostage' to extract concessions from Binance. Nigeria's National Security Adviser disputed this characterization. Gambaryan subsequently left Binance.","heading":"Nigeria: Detention of Executive Tigran Gambaryan","severity":"high","sources":[{"credibility":2,"name":"Tigran Gambaryan: The Star Crypto Investigator Kidnapped by Nigeria — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2024/12/10/tigran-gambaryan-the-star-crypto-investigator-kidnapped-by-nigeria"},{"credibility":2,"name":"Binance Exec Shares Details About Release from Nigerian Detention — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/binance-exec-tigran-gambaryan-detention-nigeria"},{"credibility":2,"name":"Tigran Gambaryan Has Left Nigeria — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2024/10/24/tigran-gambaryan-has-left-nigeria-following-months-long-detention"},{"credibility":1,"name":"The Plight of a Detained U.S. Binance Staffer — Fortune","type":"news_article","url":"https://fortune.com/crypto/2024/04/04/binance-nigeria-tigran-gambaryan-detained-conditions/"}]},{"content":"As part of the November 2023 settlement, Binance is subject to dual compliance monitorships. Forensic Risk Alliance was selected to serve as DOJ compliance monitor. Sullivan and Cromwell partner was selected as the FinCEN/Treasury monitor for a five-year term beginning in 2024. The DOJ monitorship was to run for three years. In 2025, reports emerged that Binance was in talks with the DOJ under the Trump administration about potentially removing the DOJ compliance monitor requirement before its scheduled expiration. U.S. Senators Elizabeth Warren, Mazie Hirono, and Richard Blumenthal pressed the DOJ in 2025 regarding its reported plans to drop key safeguards from the settlement amid Trump administration ties to Binance. As of May 2026, the Treasury monitorship remained active. Treasury separately tightened pressure on Binance regarding potential ongoing sanctions violations tied to Iran-linked transaction flows.","heading":"Compliance Monitor, Ongoing Oversight, and DOJ Monitor Removal Talks","severity":"high","sources":[{"credibility":1,"name":"Senator Presses DOJ and Treasury Over Status of Binance Monitors — Fortune","type":"news_article","url":"https://fortune.com/2026/04/17/senator-blumenthal-binance-doj-fincen-treasury-monitorships-status/"},{"credibility":1,"name":"Warren, Hirono, Blumenthal Press DOJ on Trump Administration's Binance Ties — Senate Banking Committee","type":"official","url":"https://www.banking.senate.gov/newsroom/minority/warren-hirono-blumenthal-press-doj-on-trump-administrations-binance-ties-and-reported-plan-to-drop-key-safeguards-in-companys-43-billion-settlement-and-plea-agreement"},{"credibility":2,"name":"Binance in Talks with DOJ Over Dropping Independent Compliance Monitor — The Block","type":"news_article","url":"https://www.theblock.co/post/370929/binance-in-talks-with-doj-over-dropping-independent-compliance-monitor-bloomberg"},{"credibility":1,"name":"DOJ Case Docket: United States v. Binance Holdings Limited","type":"court_filing","url":"https://www.justice.gov/criminal/case/united-states-v-binance-holdings-limited-dba-binancecom"}]},{"content":"Binance.US, operated by BAM Trading Services Inc., was established to serve U.S. retail users as a separate entity from Binance.com. The SEC's 2023 lawsuit alleged that the separation was illusory and that CZ exercised effective control over BAM Trading through intermediaries. During 2023, Binance.US lost USD banking access due to the regulatory pressure, significantly curtailing operations. In 2024, multiple U.S. states took action: Oregon revoked Binance.US's money transmitter license in April 2024 following CZ's felony conviction, and Georgia obtained BAM Trading's voluntary license surrender in August 2024. As part of the SEC lawsuit dismissal in May 2025, all charges against BAM Trading were dropped with prejudice. Binance.US announced plans to restore USD services in early 2025.","heading":"Binance.US (BAM Trading) Operations","severity":"medium","sources":[{"credibility":1,"name":"Oregon Division of Financial Regulation: Money Transmission Revocation for Binance.US","type":"regulatory","url":"https://dfr.oregon.gov/news/news2024/pages/20240430-binance-revocation.aspx"},{"credibility":1,"name":"BAM Trading Services Voluntarily Surrenders Georgia License","type":"regulatory","url":"https://dbf.georgia.gov/press-releases/2024-08-01/voluntarily-surrenders-georgia-license"},{"credibility":2,"name":"SEC Files to Dismiss Lawsuit Against Binance, CZ, Binance.US — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2025/05/29/sec-files-to-dismiss-regulators-long-running-lawsuit-against-binance"}]},{"content":"Richard Teng assumed the role of Binance CEO in November 2023 following CZ's resignation as part of the DOJ settlement. Teng brings a regulatory background, having served as Chief Regulatory Officer at Singapore Exchange and as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM). Under Teng's leadership, Binance has pursued an aggressive global licensing strategy. By January 2025, Binance reported achieving 21 global regulatory milestones, including a licensed broker-dealer designation in Brazil, and described itself as the most globally licensed crypto exchange. In December 2025, Binance secured three full regulatory licenses from ADGM under entities named Nest Exchange Ltd., Nest Clearing and Custody Ltd., and Nest Trading Ltd., operating under the Binance.com global platform. These entities commenced regulated activities in January 2026. Teng has also worked to transition Binance from a founder-led structure to a board-governed organization, and institutional onboarding reportedly doubled in 2024.","heading":"Leadership Transition: Richard Teng and Regulatory Expansion","severity":"low","sources":[{"credibility":2,"name":"Richard Teng: The Ex-Regulator Stabilizing Binance — CoinDesk","type":"news_article","url":"https://www.coindesk.com/consensus-hong-kong-2025-coverage/2024/12/10/richard-teng-the-ex-regulator-stabilizing-binance"},{"credibility":1,"name":"Richard Teng Faces a Gauntlet of Challenges as New CEO of Binance — Fortune","type":"news_article","url":"https://fortune.com/crypto/2024/04/10/richard-teng-binance-cz-nigeria-paris-blockchain-ceo/"},{"credibility":1,"name":"Binance Has Finally Chosen a Headquarters in Abu Dhabi — Fortune","type":"news_article","url":"https://fortune.com/2025/12/07/binance-adgm-abu-dhabi-regulatory-licenses-headquarters-uae/"},{"credibility":2,"name":"Binance Wins Full ADGM Approval — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2025/12/08/binance-wins-full-adgm-approval-for-exchange-clearing-and-brokerage-operations"}]},{"content":"Binance remains the world's largest cryptocurrency exchange by trading volume as of 2025–2026. In Q1 2025, Binance held approximately 36.5% of global centralized exchange spot trading volume, with cumulative spot trading volume reaching $7.23 trillion in 2024. Binance launched a Proof of Reserves (PoR) system in late 2022 and has maintained it, using Merkle tree verification and, since February 2023, zero-knowledge proof (zk-SNARK) technology to allow users to verify 1:1 asset backing. In February 2026, Binance converted its $1 billion SAFU (Secure Asset Fund for Users) emergency reserve from stablecoins into approximately 15,000 BTC. Binance reports zero debt in its capital structure. Institutional onboarding at Binance reportedly doubled year-over-year in 2024. Despite these positive indicators, Binance's trust score is substantially impacted by its historic compliance failures, the scale of its $4.3 billion settlement, ongoing sanctions-related litigation, and the politically controversial pardon of its founder.","heading":"Market Position and Trust Signals","severity":"medium","sources":[{"credibility":2,"name":"Binance Still Rules — 36.5% Market Share in Q1 2025 — FX Leaders","type":"research","url":"https://www.fxleaders.com/news/2025/04/18/binance-still-rules-36-5-market-share-in-q1-2025/"},{"credibility":2,"name":"Binance Converts $1B SAFU Fund Into 15,000 BTC — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/02/12/binance-converts-its-usd1-billion-safu-fund-into-15-000-btc"},{"credibility":2,"name":"Binance Revenue and Usage Statistics (2026) — Business of Apps","type":"research","url":"https://www.businessofapps.com/data/binance-statistics/"},{"credibility":2,"name":"Market Share of Centralized Crypto Exchanges — CoinGecko","type":"research","url":"https://www.coingecko.com/research/publications/centralized-crypto-exchanges-market-share"}]}],"sources_used":[{"credibility":1,"name":"DOJ: Binance and CEO Plead Guilty to Federal Charges","type":"regulatory","url":"https://www.justice.gov/archives/opa/pr/binance-and-ceo-plead-guilty-federal-charges-4b-resolution"},{"credibility":1,"name":"CFTC Press Release: Binance and CZ Agree to Pay $2.85 Billion","type":"regulatory","url":"https://www.cftc.gov/PressRoom/PressReleases/8825-23"},{"credibility":1,"name":"U.S. Treasury: Largest Settlements in History with Binance","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/jy1925"},{"credibility":1,"name":"OFAC Consent Order with Binance Holdings (PDF)","type":"court_filing","url":"https://ofac.treasury.gov/system/files/2023-11/20231121_binance.pdf"},{"credibility":1,"name":"SEC Files 13 Charges Against Binance Entities and CZ","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-101"},{"credibility":1,"name":"SEC Litigation Release: Binance Holdings et al.","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26316"},{"credibility":1,"name":"DOJ Case Docket: United States v. Binance Holdings Limited","type":"court_filing","url":"https://www.justice.gov/criminal/case/united-states-v-binance-holdings-limited-dba-binancecom"},{"credibility":2,"name":"Changpeng Zhao Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/Changpeng_Zhao"},{"credibility":1,"name":"CZ Sentenced to Four Months — CNBC","type":"news_article","url":"https://www.cnbc.com/2024/04/30/binance-founder-changpeng-zhao-cz-sentenced-to-four-months-in-prison-.html"},{"credibility":1,"name":"Trump Pardons Binance Founder CZ — CNBC","type":"news_article","url":"https://www.cnbc.com/2025/10/23/trump-pardons-binance-founder-cz-zhao.html"},{"credibility":1,"name":"Trump Pardons Jailed Binance Founder — NPR","type":"news_article","url":"https://www.npr.org/2025/10/24/nx-s1-5583983/trump-pardons-jailed-binance-founder-who-supported-trump-family-crypto-business"},{"credibility":1,"name":"SEC Drops Binance Lawsuit — CNBC","type":"news_article","url":"https://www.cnbc.com/2025/05/29/sec-drops-binance-lawsuit-ending-one-of-last-remaining-crypto-actions.html"},{"credibility":2,"name":"Hackers Steal $40.7M in Bitcoin From Binance — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2019/05/07/hackers-steal-407-million-in-bitcoin-from-crypto-exchange-binance"},{"credibility":1,"name":"$570M BNB Token Stolen — CNBC","type":"news_article","url":"https://www.cnbc.com/2022/10/07/more-than-100-million-worth-of-binances-bnb-token-stolen-in-another-major-crypto-hack.html"},{"credibility":2,"name":"Paxos to Stop Minting BUSD — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2023/02/13/paxos-to-stop-minting-stablecoin-busd-following-regulatory-action"},{"credibility":2,"name":"Binance Sued by Oct. 7 Hamas Attack Victims — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2025/11/25/oct-7-hamas-attack-victims-sue-binance-for-damages"},{"credibility":1,"name":"Binance Faces Lawsuit by Hamas Victims — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2025-11-24/binance-faces-lawsuit-by-hamas-victims-under-anti-terrorism-law"},{"credibility":2,"name":"DOJ Investigates Iran's Use of Binance — Euronews","type":"news_article","url":"https://www.euronews.com/business/2026/03/11/us-justice-department-digs-into-irans-sanctions-evasion-via-binance"},{"credibility":1,"name":"Blumenthal Opens Inquiry: $1.7B to Iran Proxies — U.S. Senate","type":"official","url":"https://www.blumenthal.senate.gov/newsroom/press/release/blumenthal-opens-inquiry-after-new-reporting-reveals-binance-allowed-17-billion-in-money-laundering-to-iran-proxies-and-russias-shadow-fleet"},{"credibility":2,"name":"Binance Fired Investigator Over DWF Labs Manipulation Report — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2024/05/09/binance-fired-investigator-who-uncovered-market-manipulation-at-client-dwf-labs-wsj"},{"credibility":2,"name":"Tigran Gambaryan Has Left Nigeria — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2024/10/24/tigran-gambaryan-has-left-nigeria-following-months-long-detention"},{"credibility":2,"name":"Richard Teng: The Ex-Regulator Stabilizing Binance — CoinDesk","type":"news_article","url":"https://www.coindesk.com/consensus-hong-kong-2025-coverage/2024/12/10/richard-teng-the-ex-regulator-stabilizing-binance"},{"credibility":1,"name":"Binance Has Finally Chosen a Headquarters — Fortune","type":"news_article","url":"https://fortune.com/2025/12/07/binance-adgm-abu-dhabi-regulatory-licenses-headquarters-uae/"},{"credibility":2,"name":"Binance Wins Full ADGM Approval — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2025/12/08/binance-wins-full-adgm-approval-for-exchange-clearing-and-brokerage-operations"},{"credibility":1,"name":"ADGM: Binance First Exchange to Secure Global License","type":"regulatory","url":"https://www.adgm.com/media/announcements/binance-becomes-first-crypto-exchange-to-secure-a-global-license-under-adgm-framework-setting-a-new-standard-in-digital-asset-regulation"},{"credibility":2,"name":"Binance Converts $1B SAFU Fund Into Bitcoin — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/02/12/binance-converts-its-usd1-billion-safu-fund-into-15-000-btc"},{"credibility":1,"name":"Senator Blumenthal Presses DOJ and Treasury Over Binance Monitors — Fortune","type":"news_article","url":"https://fortune.com/2026/04/17/senator-blumenthal-binance-doj-fincen-treasury-monitorships-status/"},{"credibility":1,"name":"Oregon Money Transmission Revocation for Binance.US","type":"regulatory","url":"https://dfr.oregon.gov/news/news2024/pages/20240430-binance-revocation.aspx"},{"credibility":1,"name":"BAM Trading Voluntarily Surrenders Georgia License","type":"regulatory","url":"https://dbf.georgia.gov/press-releases/2024-08-01/voluntarily-surrenders-georgia-license"}],"summary":"Binance is the world's largest cryptocurrency exchange by trading volume, founded in 2017 by Changpeng Zhao (CZ). In November 2023, Binance and CZ pleaded guilty to U.S. federal charges and agreed to pay $4.3 billion in combined penalties for Bank Secrecy Act violations, unlicensed money transmission, and sanctions evasion — the largest financial penalty ever imposed on a cryptocurrency company. CZ resigned as CEO, served a four-month prison sentence in 2024, and was controversially pardoned by President Trump in October 2025. Under CEO Richard Teng, Binance has pursued an aggressive global licensing strategy while remaining subject to ongoing compliance monitoring and new civil litigation tied to terrorist financing allegations.","timeline":[{"date":"2017-07-01","event":"Binance launched via ICO, raising a disputed amount between $5M and $15M. BNB token issued on Ethereum.","source":"Yahoo Finance / Forbes","source_url":"https://finance.yahoo.com/news/binance-ico-raised-less-us-090836652.html"},{"date":"2019-05-07","event":"Hackers stole 7,074 BTC (~$40.7M) from Binance hot wallet. Losses covered by SAFU fund.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2019/05/07/hackers-steal-407-million-in-bitcoin-from-crypto-exchange-binance"},{"date":"2019-08-01","event":"KYC data of up to 60,000 Binance users leaked from third-party vendor. Blackmailer demanded 300 BTC (~$3.5M).","source":"The Hacker News","source_url":"https://thehackernews.com/2019/08/binance-kyc-data-leak.html"},{"date":"2022-10-06","event":"BNB Chain cross-chain bridge exploited via forged Merkle proof, allowing attacker to mint ~2M BNB (~$570M). Approximately $100M unrecovered.","source":"CNBC","source_url":"https://www.cnbc.com/2022/10/07/more-than-100-million-worth-of-binances-bnb-token-stolen-in-another-major-crypto-hack.html"},{"date":"2022-11-06","event":"CZ tweets that Binance will liquidate its $580M FTT holdings, triggering a $6B bank run on FTX over 72 hours.","source":"Fortune","source_url":"https://fortune.com/2022/12/06/binance-cz-speaks-out-tweets-sbf-ftx-media-manipulated/"},{"date":"2022-11-11","event":"FTX files for bankruptcy after Binance backs out of acquisition. Binance trading volumes surge approximately 30%.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2022/12/09/sam-bankman-fried-cz-battle-it-out-on-twitter-over-binances-botched-ftx-buyout"},{"date":"2023-02-13","event":"NYDFS orders Paxos to cease minting BUSD. SEC issues Wells notice to Paxos over BUSD as alleged unregistered security.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2023/02/13/paxos-to-stop-minting-stablecoin-busd-following-regulatory-action"},{"date":"2023-06-05","event":"SEC files 13-count civil lawsuit against Binance Holdings, BAM Trading, BAM Management, and CZ, alleging unregistered securities operations, wash trading, and customer fund mishandling.","source":"SEC.gov","source_url":"https://www.sec.gov/newsroom/press-releases/2023-101"},{"date":"2023-11-21","event":"Binance pleads guilty to BSA, unlicensed money transmission, and IEEPA violations. CZ resigns as CEO and pleads guilty personally. $4.3B combined penalty agreed across DOJ, CFTC, FinCEN, and OFAC.","source":"DOJ / Axios","source_url":"https://www.axios.com/2023/11/21/binance-cz-step-down-settlement-doj"},{"date":"2023-11-29","event":"Binance announces it will cease all support for BUSD stablecoin on December 15, 2023.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2023/11/29/binance-will-cease-support-for-its-busd-stablecoin-on-dec-15"},{"date":"2024-02-25","event":"Binance compliance executive Tigran Gambaryan detained by Nigerian authorities on money laundering charges. Denied bail and sent to Kuje Prison.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2024/12/10/tigran-gambaryan-the-star-crypto-investigator-kidnapped-by-nigeria"},{"date":"2024-04-30","event":"U.S. District Judge Richard Jones sentences CZ to four months in federal prison, rejecting the DOJ's request for a three-year term.","source":"CNBC","source_url":"https://www.cnbc.com/2024/04/30/binance-founder-changpeng-zhao-cz-sentenced-to-four-months-in-prison-.html"},{"date":"2024-05-09","event":"Wall Street Journal reports Binance fired its head of market surveillance after he submitted internal report alleging $300M wash trading by VIP client DWF Labs. Binance disputes the characterization.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2024/05/09/binance-fired-investigator-who-uncovered-market-manipulation-at-client-dwf-labs-wsj"},{"date":"2024-06-03","event":"CZ begins serving four-month sentence at federal facility in California.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2024/06/03/former-binance-ceo-cz-begins-4-month-prison-sentence-in-california"},{"date":"2024-09-27","event":"CZ released from federal custody after completing four-month sentence.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2024/06/03/former-binance-ceo-cz-begins-4-month-prison-sentence-in-california"},{"date":"2024-10-24","event":"Nigeria drops charges against Tigran Gambaryan; he is released after eight months of detention and departs Nigeria for medical treatment.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2024/10/24/tigran-gambaryan-has-left-nigeria-following-months-long-detention"},{"date":"2025-02-11","event":"SEC and Binance jointly move to pause the 2023 civil lawsuit, signaling potential resolution under Trump administration.","source":"Fortune","source_url":"https://fortune.com/crypto/2025/02/11/binance-sec-pause-lawsuit-amid-trump-admin-crypto-boosting/"},{"date":"2025-05-29","event":"SEC files to dismiss with prejudice its 13-count lawsuit against Binance, BAM Trading, and CZ under SEC Chairman Paul Atkins.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2025/05/29/sec-files-to-dismiss-regulators-long-running-lawsuit-against-binance"},{"date":"2025-10-23","event":"President Donald Trump grants a full presidential pardon to Changpeng Zhao. Congressional Democrats and bipartisan critics condemn the pardon.","source":"CNBC","source_url":"https://www.cnbc.com/2025/10/23/trump-pardons-binance-founder-cz-zhao.html"},{"date":"2025-11-25","event":"306 families of October 7, 2023 attack victims sue Binance, CZ, and executive Guangying Chen under the Anti-Terrorism Act, alleging Binance knowingly facilitated over $1B in transactions for Hamas, Hezbollah, IRGC, and PIJ.","source":"CoinDesk / Bloomberg","source_url":"https://www.coindesk.com/business/2025/11/25/oct-7-hamas-attack-victims-sue-binance-for-damages"},{"date":"2025-12-08","event":"Binance secures three full regulatory licenses from Abu Dhabi Global Market (ADGM), covering exchange, clearing, and brokerage operations under entity names Nest Exchange, Nest Clearing, and Nest Trading.","source":"CoinDesk / ADGM","source_url":"https://www.coindesk.com/policy/2025/12/08/binance-wins-full-adgm-approval-for-exchange-clearing-and-brokerage-operations"},{"date":"2026-02-12","event":"Binance converts its $1B SAFU emergency insurance fund from stablecoins into approximately 15,000 BTC.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2026/02/12/binance-converts-its-usd1-billion-safu-fund-into-15-000-btc"},{"date":"2026-03-11","event":"U.S. Department of Justice opens new investigation into whether Iran used Binance to circumvent U.S. sanctions, following Fortune report of over $1.7B transferred to Iran-linked entities.","source":"Euronews / CoinDesk","source_url":"https://www.euronews.com/business/2026/03/11/us-justice-department-digs-into-irans-sanctions-evasion-via-binance"},{"date":"2026-04-17","event":"Senator Blumenthal presses DOJ and Treasury on status of Binance compliance monitors amid Iran sanctions concerns. Treasury tightens pressure on Binance regarding potential violations.","source":"Fortune / The Block","source_url":"https://fortune.com/2026/04/17/senator-blumenthal-binance-doj-fincen-treasury-monitorships-status/"}]},"v":1}