Global Crypto Exchange Binance will pay a massive settlement of $4.3 billion owing to breaches of legal regulations, not fraud, as revealed by the Commissioner of the Commodity Futures Trading Commission (CFTC), Kristin Johnson.
Johnson commented on the Binance saga when speaking at a digital assets summit on Dec 5.
Binance Paid for Breaching Rule, Not Fraud
In his comments, the CFTC commissioner mentioned that the Binance saga involved nary an allegation of fraud. Johnson outrightly said:
“There’s a common assumption that enforcement actions in the crypto or digital assets ecosystem connote bad actors or bad conduct. Admittedly, there is plenty of evidence to support this assumption… The matter and the resolution of the litigation did not involve any allegation of fraud or similar misconduct.”
Per Johnson, the amount was massively heightened since regulators had issued earlier warnings to the exchange. As such, the high fine will act as a deterrent for any other groups. He noted that the hefty fine would be part of the “guardrails.”
Johnson highlighted the vitality of understanding necessary compliance measures for firms wishing to operate in the crypto realm.
Binance agreed to pay $4.3 billion to CFTC and other regulators a few weeks ago. $1.35 billion was a civil penalty, and another $1.35 billion would settle the March lawsuit, which accused the exchange of operating unlicensed crypto derivative trading networks.
Sentiments of Key Opinion Leaders
While the CFTC commissioner commented on the Binance case, several KOLs in the crypto space have also been part of the conversation. The CEO of Coinbase, Brian Armstrong, saw the settlement as a positive step for the blockchain space.
BitMex founder Arthur Hayes also commented on the situation. He condemned the wrongful treatment of Changpeng Zhao and Binance, citing inconsistencies in the nature of punishment.
However, the former SEC Chief, John Reed Stark, noted that the SEC might have access to much evidence against Binance. This came after Binance agreed to allow oversight from a government-appointed monitor for five years.