Continuing Suspension of Binance.US in Florida and Alaska Persists After CZ’s Admission of Guilt

The legal issues surrounding Binance never seem to end. The popular centralized cryptocurrency exchange is facing a massive $4.3 billion fine from the CFTC, the Department of Justice, and other U.S. government agencies. Now, it is also under scrutiny from regulators in Florida and Alaska.

After the ex-CEO Changpeng Zhao pleaded guilty to three counts in November, Binance.US has been banned from serving residents in Florida and Alaska by state regulators. This comes as a result of CZ’s guilty plea to Bank Secrecy Act violations, which triggered regulatory actions against the exchange.

In January 2024, the Alaska Division of Banking and Securities declined to renew Binance.US’s license, while Florida’s Office of Financial Regulation issued an emergency suspension order against its money transmitter license. These actions raise concerns about the competence of the exchange in overseeing operations for American crypto traders.

While Binance.US has reached agreements with regulators in Arkansas, Illinois, and South Dakota to continue operating in those states, the regulatory challenges in Florida and Alaska add another layer of complexity to the ongoing legal saga. Despite CZ’s attempts to secure travel permissions using his stake in Binance.US, a court ruling denied his request.

As CZ faces potential sentencing and a potential 18-month prison term on February 23, 2024, the fate of Binance.US remains uncertain. The exchange is still embroiled in a lawsuit with the U.S. SEC, and its history of security issues and misappropriation of customer funds further adds to the uncertainty surrounding its future.

In conclusion, Binance.US is facing regulatory scrutiny in Florida and Alaska due to CZ’s guilty plea, adding to the ongoing legal challenges it already faces. The future of the exchange remains uncertain, given its tainted history and the current legal saga it is entangled in.