Breaking: Binance CEO announces his resignation
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The cryptocurrency industry has been marked by rapid growth, innovation, and a fair share of controversy. One of the most prominent players in this dynamic realm, Binance, has been under scrutiny from US regulators for alleged violations of anti-money laundering (AML) and Know Your Customer (KYC) requirements.
In a significant development, Binance has reached a $4.3 billion settlement with US authorities, bringing to an end a years-long investigation and marking a turning point for the crypto exchange.
Just hours after the settlement news broke, the crypto world is once again shocked as Binance CEO CZ steps down. Here are the details.
Binance CEO CZ steps down
In a federal court in Seattle, Zhao pleaded guilty to anti-money laundering and sanctions violations brought by the DOJ. The DOJ alleged that Binance had failed to prevent and report “suspicious transactions with terrorists,” citing both Al Qaeda and ISIS.
The settlement also includes a $4 billion fine, with $3.4 billion going to FinCEN and $968 million to OFAC. Binance will also be subject to compliance requirements and monitoring for a period of five years.
The result? Binance CEO steps down and Binance executive Richard Teng will succeed Zhao as CEO. Teng has been with Binance since 2018 and has held a number of senior positions.
CZ has shared the following memo on Twitter/X.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ ? Binance (@cz_binance) November 21, 2023
Binance, on the other hand, has published a blog post about the situation.
CZ remains a major shareholder
Despite stepping down as CEO, Zhao will remain a majority shareholder in Binance. He will also remain a ''resource for consultation on historical areas of the business''.
The settlement and CZ steps down news comes as crypto exchanges are facing increasing scrutiny from regulators around the world. In the United States, the SEC has been cracking down on crypto exchanges for operating without a license and for misleading investors.
The settlement is likely to have a significant impact on the crypto industry. It is a reminder that exchanges must comply with regulations, and that they will face serious consequences if they do not.
Featured image credit: Binance.Advertisement