CFTC settles with Binance CEO imposing $150 million fine; penalizes exchange for $1.35 billion

Binance is attempting to make a comeback from a regulatory point of view after being charged by the United States government earlier this month. The exchange settled with the Department of Justice and is now settling with the Commodity Futures Trading Commission (CFTC), saving the CEO Changpeng Zhao from further prosecution.

CFTC and Binance CEO settle

In a press release on December 18, the CFTC announced that it settled and entered a consent order of permanent injunction, civil monetary penalty, and equitable relief against Changpeng Zhao and Binance. Zhao will be required to pay a $150 million penalty personally, while Binance has been fined $1.35 billion.

Per the filing, Zhao and Binance were charged with knowingly violating US regulatory requirements and concealing the presence of American users on the platform. Thus, as a measure to prevent this from happening again, the CFTC ordered Binance to make certifications that ensure that it will no longer allow sub-accounts. The CFTC further added,

“After applying all KYC policies and procedures to all existing sub-accounts, Binance will offboard every account that fails to meet its compliance controls. In addition, the order requires Binance and Zhao to certify Binance will implement a corporate governance structure that includes a Board of Directors with independent members, a Compliance Committee, and an Audit Committee.

Judge Manish Shah also ordered Binance’s former Chief Compliance Officer Samuel Lim to pay a $1.5 million civil monetary penalty for “aiding and abetting Binance’s violations and engaging in activities outside of the U. S. to evade or attempt to evade US law willfully.”

Binance Coin price fails to breach month-old resistance

Binance Coin price did not react to the CFTC settlement the way it did during the Department of Defense’s charges’ announcement. Over the past 24 hours, BNB has noted no significant increase or decrease in price, trading at $245 at the time of writing 

The altcoin failed to breach the nearly month-and-a-half-old barrier marked at $255 but has also been maintaining $231 as a support level. If, over the coming weeks, the broader market cues turn bullish and this resistance is broken, BNB could see a recovery to $264, marking a six-month high.

BNB/USD 1-day chart

The price indicators also suggest a short-term bullish outlook, provided BNB does not face bearishness, which is likely considering the barrage of legal actions taken against the exchange and Zhao. This would result in Binance Coin price testing $231 as support, and falling through the same would result in a crash to $219, invalidating the bullish thesis.