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The post <a href="https://coinpedia.org/news/binance-us-still-suspended-in-florida-and-alaska-following-czs-guilty-plea/" rel="noopener noreferrer nofollow">Binance.US Still Suspended in Florida and Alaska Following CZ’s Guilty Plea</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a>
The legal problems surrounding <a href="https://app.coinpedia.org/company/binance" target="_blank" class="profile-details" rel="noopener noreferrer nofollow">binance</a> <img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10122626/info_icon.svg" alt="information" class="info-icons"> <a href="https://app.coinpedia.org/company/binance" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190601/link.svg"></a> <a href="https://www.binance.com/" target="_blank" rel="noopener noreferrer nofollow"> <img decoding="async" src="https://image.coinpedia.org/app_uploads/profile/1664610315244lexyqsklms.png" class="company_logo_img" target="_blank"></a> binance binance@miceneurol.com Centralised Exchange <a href="https://www.binance.com/" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10161442/globe.svg"></a> <a href="https://www.linkedin.com/company/binance" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190603/li.svg"></a> <a href="https://twitter.com/binance" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190602/tw.svg"></a> <a href="https://www.youtube.com/binanceyoutube" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10153100/yt.svg"></a> <a href="https://www.instagram.com/binance/" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190603/in.svg"></a> <a href="https://medium.com/@Binance" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10153100/me.svg"></a> <a href="https://www.reddit.com/r/binance" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10153059/rd.svg"></a> never seem to come to an end. The crypto exchange with an impending $4.3 Billion file to be paid to the CFTC, the Department of Justice, and other U.S. government agencies, is now under fire from regulators in Florida and Alaska.&nbsp;
After the ex-CEO, <a href="https://app.coinpedia.org/cz_binance" target="_blank" class="profile-details" rel="noopener noreferrer nofollow">changpeng zhao</a> <img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10122626/info_icon.svg" alt="information" class="info-icons"> <a href="https://app.coinpedia.org/cz_binance" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190601/link.svg"></a> <img decoding="async" src="https://image.coinpedia.org/app_uploads/profile/1649327642152kgljvninim.png" class="user_profile_img"> changpeng zhao founder and ceo at Binance Changpeng Zhao is the Founder and Chief Executive Officer at Binance.His contribution to the enhancement of Binance made the platform world’s largest cryptocurrency exchange since its inception in 2017. Zhao launched the blockchain network Binance Smart Chain which has made a remarkable contribution to the development of the decentralized finance ecosystem. Whereas in 2019, he launched Binance’s US affiliate, Binance.US. &nbsp; He is commonly known as CZ, a Chinese-Canadian Business Executive who has been ranked 113th richest in the globe as of 2022. In the past, he founded Fusion Systems, a trading system for brokers famous for some of the fastest high-frequency trading systems for brokers. Zhao has served as a member of the team that developed Blockchain.info and played the role of Chief Technology Officer of OKCoin, a secure cryptocurrency exchange platform for Bitcoin, Ethereum, Dogecoin, and other crypto assets. EntrepreneurInvestorChief Executive Officer <a href="https://www.linkedin.com/in/cpzhao" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190603/li.svg"></a> <a href="https://twitter.com/cz_binance?ref_src=twsrc%5egoogle%7ctwcamp%5eserp%7ctwgr%5eauthor" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190602/tw.svg"></a> <a href="https://www.youtube.com/watch?v=-1d3arvu0gg" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10153100/yt.svg"></a> <a href="https://www.instagram.com/changpengzhao/?hl=en" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190603/in.svg"></a> pleaded guilty to three counts in November, the State regulators have barred Binance.US from serving residents in Florida and Alaska.
<h2 class="wp-block-heading" id="h-background">Background</h2>
In November 2023, a U.S. federal court accepted CZ’s guilty plea to Bank Secrecy Act violations. In December 2023, Binance.US underwent a rigorous settlement deal that not only imposed a hefty fine but also compelled the firm to operational changes.&nbsp;
CZ’s guilty plea triggered regulatory actions with Florida’s Office of Financial Regulation, issuing an emergency suspension order against Binance.US.&nbsp;
This license restricted the platform from operating in the state. Regulators argue that CZ’s guilty plea, making him an 80% shareholder in Binance.US, raises questions about the competency of the firm to oversee operations catering to American crypto traders.
Also Read: <a href="https://coinpedia.org/news/relief-in-sight-jpmorgan-analysts-report-easing-gbtc-sell-off/" target="_blank" rel="noopener noreferrer nofollow">Relief in Sight: JPMorgan Analysts Report Easing GBTC Sell-Off</a>
<h2 class="wp-block-heading" id="h-regulatory-backlash">Regulatory Backlash</h2>
According to a <a href="https://www.wsj.com/livecoverage/stock-market-today-dow-jones-earnings-01-25-2024/card/states-take-aim-at-binance-us-after-cz-plea-LaSmw4OXrvEsyfibeU91?page=1" rel="noopener noreferrer nofollow">January 25 report</a>, regulatory authorities in Florida and Alaska have informed Binance.US that the cryptocurrency exchange is no longer permitted to cater to their residents.
In January 2024, the Alaska Division of Banking and Securities declined to renew Binance.US’s license. Additionally, Florida’s Office of Financial Regulation took action by issuing an emergency suspension order against Binance.US’s money transmitter license following CZ’s guilty plea.
While the U.S. government’s actions have targeted the global exchange’s U.S. operations, Binance.US has tried its best to reassure customers that it remains fully operational despite the legal troubles surrounding its founder.&nbsp;
Late last year, regulators in Arkansas, Illinois, and South Dakota reportedly reached agreements with Binance.US to allow its continued operation in those states, contingent on irreversible changes to CZ’s voting rights.
Despite CZ’s attempts to use his $4.5 billion stake in Binance.US as security for travel permissions, a recent court ruling denied his request. As CZ faces sentencing on February 23, 2024, with a potential 18-month prison term, the regulatory challenges surrounding Binance.US add another layer of complexity to the ongoing legal saga.
<h2 class="wp-block-heading" id="h-in-conclusion">In Conclusion</h2>
Binance.US finds itself in the regulatory crosshairs in Florida and Alaska, following the consequences of CZ’s guilty plea. Presently still tied in a lawsuit against the U.S. SEC, the fate of Binance.US remains uncertain, considering its tainted history of security and misappropriation of customer funds.&nbsp;

Binance.US Still Suspended in Florida and Alaska Following CZ’s Guilty Plea

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