Key Takeaways
- CZ roasted the absence of criminal charges following Bank of America’s $1.21 billion penalty.
- The Treasury found Bank of America failed to timely report more than $5 billion in suspicious transactions.
- Bank of America must review missed transactions and strengthen its compliance controls.
CZ Takes Swipe at Bank of America After $1.21 Billion Fine and No Jail Time
Binance founder Changpeng Zhao (CZ) had a few choice words on Wednesday after Bank of America got walloped with more than $1.21 billion in federal penalties for anti-money laundering and sanctions violations. The banking behemoth admitted to willfully violating the Bank Secrecy Act, while regulators disclosed that more than $5 billion in suspicious transactions had gone unreported or were reported late.
Yet amid the billion-dollar reckoning, no bank executives faced criminal charges. Zhao seized on that detail in a pointed post on X, offering his own assessment of how the affair played out. Responding to an Oct. 14 X post detailing the enforcement action, Zhao didn’t mince words about the consequences facing the bank’s leadership. He stated:
“No one went to prison. No home confinement. No DPAs. No one was even charged. Water under the bridge. Onwards!”
His remarks followed Tuesday’s announcement that the U.S. Treasury Department had handed down the third-largest penalty in its history against America’s second-largest bank. The comparison carries some personal history. Zhao previously served four months in federal prison after pleading guilty to a compliance violation involving Binance. President Donald Trump subsequently pardoned him in October 2025.
Treasury Blows the Lid Off $5 Billion in Suspicious Activity
The Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty after determining that Bank of America failed to adequately identify, investigate and report suspicious financial activity. More than $1 billion of the $5 billion in questionable transactions involved priority national security risks, including Chinese money-laundering networks and illicit financial activity along the southwestern U.S. border.
The Office of the Comptroller of the Currency (OCC) separately imposed a record $750 million penalty, credited toward FinCEN’s assessment rather than added to it. The Office of Foreign Assets Control (OFAC) also secured an $11.6 million settlement involving 475 apparent sanctions violations tied to programs targeting Iran, Russia, narcotics trafficking and terrorism.
Regulators painted a particularly unflattering picture of the bank’s internal controls. Treasury said Bank of America prioritized revenue while allowing compliance deficiencies to fester, and the OCC found that trillions of dollars in transactions had not been adequately monitored. The problems persisted despite a December 2024 cease-and-desist order demanding corrective action.
Lark Davis and Zerohedge Pile On
Cryptocurrency commentator Lark Davis also weighed in, taking aim at the bank’s failure to timely report $5 billion in suspicious transactions and the comparatively modest hit to its earnings per share. Davis capped his criticism with the observation, “and they tell you crypto is the bad guy.”
Financial commentary outlet Zerohedge likewise zeroed in on the enforcement findings, drawing attention to Chinese money-laundering networks and the billions in suspicious transactions identified by federal authorities. The revelations gave critics plenty of ammunition, particularly given the bank’s admission of willful violations and the absence of criminal charges against individual executives.
Bank of America Foots the Bill, but Questions Linger
Bank of America says it has already poured billions into compliance technology and assigned thousands of employees to financial crime prevention. The institution expects to absorb a $1.2 billion non-tax-deductible charge against third-quarter earnings, equivalent to approximately 17 cents per share.
The settlement also requires an independent review of previously overlooked transactions, along with additional improvements to the bank’s compliance machinery.
For all the billion-dollar penalties, corrective orders and promises of reform, the former Binance boss‘s Wednesday commentary landed on a rather conspicuous detail. Bank of America admitted to willful violations of federal banking law, but the announced resolutions left its executives without criminal charges. As the cynical argument goes, the quickest way to put a financial heavyweight behind bars isn’t to break banking regulations, but to steal from the people who run the banks.
