Binance, the international crypto hub founded by CEO Changpeng Zhao in 2017, is set to plead guilty to violations of US anti-money laundering regulations. The Wall Street Journal reports this based on sources within the company. As a result of the plea agreement, Binance will be allowed to continue functioning with Zhao retaining a majority stake in the company, albeit without an executive role in management. On Tuesday afternoon local time in Seattle, Washington state, Zhao is due to appear in federal court and enter his guilty plea. The company has agreed to pay a billion-dollar fine totaling 4.3 billion euros as part of the deal.
This news comes after it was announced that Binance will remain active in Belgium through a Polish license. In June, financial regulator FSMA ordered Binance to discontinue its crypto services in Belgium and transfer all funds back to its customers due to operating illegally from countries outside of the European Economic Area. However, it is unclear if these violations are related to the plea agreement reached between Binance and US authorities.