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Timeline of US enforcement actions

Timeline of US enforcement actions

Binance and its founder Changpeng”CZ” Zhao has admitted to violating United States laws around money laundering and terror financing — agreeing to pay $4.3 billion in fines

The

Here’s what happened.

Feb. 15: Binance was under suspicion since 2018

Reports emerged that Binance is the target of several United States law enforcement investigations — some dating back to 2018.

March 1: Congress involved — Elizabeth Warren leads the charge

Binance came under U.S. Congress scrutiny on March 1 as Senators Elizabeth Warren, Chris Van Hollen and Roger Marshall sent a letter to Binance CEO Changpeng “CZ” Zhao and Binance.US CEO Brian Shroder requesting answers to several allegations and the companies’ balance sheets. The Senators were not satisfied with the responses and the executives were later accused of lying.

Sen. Warren and company’s letter to CZ. Source: Office of Sen. Elizabeth Warren

March 27: CFTC strikes with 7 charges

The Commodity Futures Trading Commission (CFTC) filed suit against Zhao, chief compliance officer Samuel Lim and Binance, naming seven counts of trading irregularities and market manipulation. The CFTC investigation reportedly began in 2021. Zhao vehemently denied the charges.

May 5: DOJ also has eyes on Binance

Bloomberg reported that Binance is under investigation by the Justice Department for violations of sanctions against Russia. Binance maintained a presence in Russia through September.

June 5: SEC strikes with 13 charges

The Securities and Exchange Commission filed suit against Binance, Binance.US and Zhao on June 5 with 13 charges, including unregistered securities sales, allowing U.S. customers to use the Binance exchange, intermingling customer and corporate funds and wash sales.

The SEC suit against Binance, Binance.US and CZ. Source: Court Listener

The SEC got an emergency restraining order against Binance.US and the exchange drastically cut back its U.S. activities.

July 6: Binance leadership exodus starts

Four senior members of the Binance.US team left the company, starting a wave of departures that continued for months.

Aug. 2: DOJ mulls move on Binance

The Justice Department was reported to be considering fraud charges against Binance. To avoid a run on the exchange, the…

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