Laws" and that the company allowed illicit actors to transact freely on its platform, supporting activities ranging from child sexual abuse to terrorism.

The investigation into Binance, conducted by multiple regulators and law enforcement agencies including the Commodities Futures Trading Commission, revealed that the exchange had violated U.S. laws to prevent money laundering and sanctions violations. Binance acknowledged that it did not take proper steps to prevent money laundering on its platform and operated illegally in the U.S., allowing traders from sanctioned nations like Iran to engage in business deals with Americans.

CEO Changpeng Zhao, a Canadian national, pleaded guilty to one federal charge of violating anti-money laundering laws. He will step down from his position as CEO and faces a potential prison sentence of 1 to 10 years. Zhao tweeted that stepping down was difficult but the right thing to do, taking responsibility for his mistakes. Richard Teng, the global head of regional markets, will take over as the new CEO.

Federal investigators alleged that Binance had profited illegally by allowing darknet actors and ransomware hackers to operate on its platform. They also found that the exchange did not properly screen for other illicit services. Between January 2018 and May 2022, Binance processed 1.1 million transactions totaling nearly $900 million between Americans and individuals believed to be in Iran.

Binance allegedly encouraged high-value clients to conceal their U.S. connections. The purpose of the conspiracy, as stated in court documents, was for Binance to gain market share and profit quickly as a virtual currency exchange. The company pleaded guilty to the criminal information filed against it.

Attorney General Merrick Garland, Treasury Secretary Janet Yellen, and other federal officials announced the historic settlement of over $4.3 billion on Tuesday. Yellen emphasized that Binance allowed illegal transactions associated with terrorist groups such as Hamas's Al-Qassam Brigades, Palestinian Islamic Jihad, Al Qaeda, and ISIS.

Garland stated that Binance became the largest cryptocurrency exchange in the world partly due to the crimes it committed and that now it is paying one of the largest corporate penalties in U.S. history. The agreement with the Justice and Treasury Departments requires Binance to cooperate with U.S. laws, submit suspicious activity reports, and appoint a new CEO with a compliance background.

Binance is still facing a separate lawsuit filed by the Security and Exchange Commission for failing to register in the U.S. and diverting investor funds to an account controlled by Zhao. The company has not yet responded to CBS News' request for comment.

The settlement comes shortly after the founder of another cryptocurrency exchange, FTX, was found guilty of fraud, conspiracy, and money laundering. Justice Department officials emphasized the importance of compliance for emerging and disruptive companies, warning that prioritizing profits over regulations could lead to federal prosecution.