A federal judge has signed a $4.3 billion (approximately 645 billion yen, equivalent to 150 yen to the dollar) plea agreement between major cryptocurrency exchange Binance and the U.S. Department of Justice.

At a sentencing hearing on the 23rd, Judge Richard Jones of the U.S. District Court for the Western District of Washington approved the maximum fine itself, but did not yet sign off on any oversight of Binance. Bloomberg first reported the news on the 23rd.

The U.S. Department of Justice announced a settlement in November last year, accusing Binance of violating sanctions and anti-money laundering laws for years. Under the terms of the settlement, Binance will pay $4.3 billion, appoint an independent compliance monitor, and require founder and then-CEO Changpeng Zhao to step down. Mr. Zhao has pleaded guilty to a separate charge and is scheduled to be sentenced in late April.

A Binance spokesperson said in a statement that the company has admitted responsibility through a plea agreement and has improved its know-your-customer (KYC) and anti-money laundering compliance in recent years.

“We are pleased that regulators have recognized our cooperation and significantly strengthened compliance,” the spokesperson said. “We look forward to working with them in the coming months to set industry standards for compliance, security and transparency.” We want to strengthen it even further.”

A Justice Department spokeswoman declined to comment. In a sentencing memorandum ahead of the hearing, prosecutors said the agreement “reflects the nature and circumstances” of Binance’s alleged conduct.

“Importantly, the agreed sentence promotes both concrete and general deterrence. As part of the plea agreement, Binance will take steps to ensure continued compliance with U.S. law.” The important judgment agreed here is that other financial institutions that may attempt to violate the law under the guise of “innovation” will be subject to serious consequences for criminal conduct. ”, the memorandum states.

｜Translation and editing: Rinan Hayashi
｜Image: Jesse Hamilton/CoinDesk
｜Original text: Judge Signs Off on Binance’s $4.3B Plea Deal With US Prosecutors