Enforcement Release: Binance Holdings, Ltd.

Date issued: Nov. 21 2023

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TURBOFAC Commentary (1749 words)

Notes:

1) The Binance case is global settlement involving OFAC, FinCEN, the CFTC and the DOJ requiring Binance to pay over $4.3 billion in criminal forfeiture, penalties, and fines. (See Plea Agreement & Statement of Facts - Binance Holdings, Ltd. For the FinCEN and CFTC actions, see https://www.fincen.gov/sites/default/files/enforcement_action/2023-11-21/FinCEN_Consent_Order_2023-04_FINAL508.pdf and https://www.cftc.gov/media/8351/%20enfbinancecomplaint032723/download). The OFAC penalty, while nominally being the second highest ever levied, behind Civil Enforcement Information - BNP Paribas SA, was mostly “deemed satisfied” by payments in satisfaction of Binance’s obligations under its plea agreement with the DOJ. But see section IV of Settlement Agreement (OFAC) - Binance Holdings, Ltd. (OFAC imposing unusually harsh conditions and an “in-case-of-breach” provision).

2) NOVEL “SERVICE” AND “CAUSING” INTERPRETATIONS; IMPLICATIONS FOR OTHER TYPES OF TRADING PLATFORMS

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