Binance CEO Changpeng Zhao has agreed to resign and plead guilty to violating anti-money laundering laws to allow his company to relaunch its US operations. This agreement, reached with the US Department of Justice (DOJ), is accompanied by a record $4.3 billion fine imposed on Binance for these violations.
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Farewell CZ, you are no longer the CEO of Binance
Changpeng Zhao, the charismatic leader of Binance, the world’s leading crypto exchange platform, has decided to step down from its position of CEO within the company he himself created. This decision is intended to ensure the continuity of his empire’s activities in the United States.
Indeed, Binance is currently facing lawsuits from several U.S. departments, including the U.S. Department of Justice. SEC, the CFTC and the Department of Justice.
According to a report by Bloomberg published yesterday, the U.S. Department of Justice gave some conditions to Binance to conclude his survey into recurring suspicions of money laundering, sanctions violations and fraud.
Thus, in accordance with the agreement reached with the DOJ, CZ admitted having repeatedly violated US rules against money laundering and the financing of illicit activities. As a result, he has agreed to step down from his position.
However, despite his departure as CEO, Changpeng Zhao retains majority shareholding from Binance. Although he is no longer at the helm, the Chinese-born entrepreneur remains the main shareholder. His withdrawal nevertheless marks a turning point for the exchange, now deprived of its charismatic and emblematic leader.
4.3 billion dollar agreement with the authorities
In return for the resignation of CZ and his confession, Binance will pay the colossal sum of $4.3 billion. This is the largest amount ever claimed from a cryptocurrency exchange platform in the United States.
Despite this hefty check, Binance will be able to continue its activities, but under the close supervision of the American judicial authorities.
The DOJ will require full access to the platform’s internal documents to investigate transactions suspected of money laundering or financing illicit activities.
Even if Binance reaches an agreement with the DoJ, the company remains under persistent threat from US regulators. According to WSJ, this resolution does not cover ongoing litigation between Binance and the Securities and Exchange Commission (SEC). So the battle goes on.
With the resounding departure of its founder and a fine exceeding 4 billion, Binance is turning the most troubled page in its history. The company now hopes to return to more transparent and ethical growth in the United States. It has no choice but to redouble its efforts in terms of regulatory compliance and governance.
Whatever the outcome of this saga, Changpeng Zhao will go down as one of the most influential entrepreneurs of the cryptocurrency industry’s “early days”, and his retirement marks the end of an era...
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.