Chengpeng Zhao, the founder of Binance, pleads guilty to money laundering charges: DOJ

The Justice Department stated Tuesday that Binance and its CEO are pleading guilty to anti-money laundering offenses and paying over $4 billion in fines.

On Tuesday, the company's founder, Chengpeng Zhao, pleaded guilty in Seattle federal court to failing to maintain an effective anti-money laundering program and agreed to quit, the Justice Department said. In addition, the corporation will participate in anti-money laundering and sanctions compliance procedures and hire an independent monitor for three years.

The government alleges that Binance, the world's largest cryptocurrency exchange, violated their money transmission company registration by allowing terrorists, cybercriminals, and child abusers to utilize their platform. They further accuse the corporation of benefitting from unlawful transactions between U.S. customers and Iran, Cuba, Syria, and Russian-occupied Ukraine. U.S. and Iranian users traded $898 million on Binance in four years, according to the department.

DOJ calls the company's $4 billion fine one of the "largest corporate penalties in U.S. history." As part of his plea deal, Zhao will pay $50 million.

The felony Zhao pleaded guilty to carries a potential 10-year prison sentence, but federal prosecutors have yet to decide what he should serve. On Tuesday, Justice Department officials informed reporters they will propose jail.