The last few years have been tough for the crypto industry and its leaders.
And it doesn’t look like there will be any relief for the sector any time soon. At least that’s what politicians are signalling.
This week, Binance chief executive Changpeng Zhao, along with his former industry rival Sam Bankman-Fried, made headlines for charges against him and his crypto exchange that included violating US anti-money laundering laws.
On Tuesday, Zhao pleaded guilty and stepped down from his role as CEO. Binance will pay over $4.3 billion in fines, $50 million of which will be paid by the former CEO himself. Part of this will go to settle claims by the Commodity Futures Trading Commission for allowing US customers to trade unregistered crypto derivatives.
A statement from CFTC Commissioner Christy Goldsmith Romero said: “There are no pirate ships in the US markets” and that “access to US customers is a privilege, not a right”.
Goldsmith added that the CFTC plans to continue its aggressive pursuit of crypto exchanges that violate trading laws.
The commissioner noted that there will be zero tolerance for the use of VPNs or other actions that could circumvent KYC rules, including pop-up questions that merely ask users to certify that they aren’t located in the US.
In a separate statement, CFTC Commissioner Caroline D. Pham said the CFTC’s reach knows no bounds. “It should be crystal clear that the CFTC will not stop in its pursuit of non-US entities,” Pham said.
The swift action comes amid a long-running case against FTX founder SBF, who has pleaded not guilty to seven charges, including conspiracy to commit money laundering. He remains in New York’s Metropolitan Detention Center awaiting sentencing. He faces up to 110 years in prison.
