CZ Ordered to Partner With Chainalysis On Pro KYC/AML Campaign As Part of Plea Deal
Changpeng Zhao (CZ), CEO and founder of Binance has agreed to plead guilty to violating criminal U.S. anti-money-laundering requirements, in a deal that may preserve the company’s ability to continue operating. The deal includes $4.3 billion in fines, some of which will go towards a new campaign to promote KYC/AML compliance and discourage use of Bitcoin mixing services.
The details of the campaign include requirements that CZ partner with blockchain forensics company Chainalysis, as well as the American campaign to reduce teen tobacco use, Truth Initiative. Authorities believe CZ's participation in the campaign, as it's official spokesman, will increase the campaign's effectiveness due to the soon-to-be former CEO's outsized influence with cryptocurrency enthusiasts.
The specifics of the campaign, its message, and final budget are yet to be determined but officials told The Bugle it will emphasize the importance of compliance and encourage Americans to cooperate with financial institutions as they collect their personal data in order to prevent fraud, money laundering, and tax evasion while providing cryptocurrency and banking services. The campaign is expected to connect mixing services, and other money laundering techniques, to terrorism while emphasizing the importance of paying taxes in the fight against climate change.
People close to CZ say he didn't agree to this campaign without putting up a fight. Some have speculated that federal prosecutors threatened CZ with a lengthy prison sentence, similar to the type of sentence many anticipate for the former CEO of FTX, Sam Bankman-Fried, who was convicted on 8 counts of fraud last month.
