Changpeng Zhao, the CEO of Binance, has resigned and is anticipated to enter a guilty plea to a criminal charge

November 22, 2023 Samson Ayodeji

According to sources, Changpeng Zhao, also known as CZ, the co-founder and CEO of Binance, decided to step down from his position at the exchange on Tuesday. This is happening as the US Department of Justice (DOJ) gets ready to declare that it has reached a $4.3 billion settlement with Binance, the biggest cryptocurrency exchange in the world.

Changpeng Zhao plans to enter a guilty plea to multiple charges brought by the DOJ, according to Bloomberg. He is expected to enter a plea in a federal court on Tuesday afternoon in Seattle. Additionally, the story states that he would enter a guilty plea to “one criminal charge.”

He would still be able to own the majority of the cryptocurrency exchange, but he would no longer be able to exercise executive authority over the business.

Additional details about Changpeng Zhao’s departure

As part of a large settlement with the US Department of Justice, Chaopeng Zhao will enter a guilty plea to criminal charges relating to breaking US anti-money-laundering statutes.

According to numerous sources, the plea agreement with federal authorities would provide a way for Binance, the cryptocurrency exchange, to carry on without its effervescent creator in charge of operations, in exchange for Binance paying a $4.3 billion fine.

Attorney General Merrick Garland is anticipated to make the announcement of the agreement with the US Department of Justice and other US regulators during a news conference in Washington at 3 p.m. ET.

Binance’s regulatory obstacles

A multi-year investigation into the cryptocurrency exchange would come to an end with the anticipated agreement with the US Department of Justice.

The Commodities Futures Trading Commission (CFTC) sued Zhao and the cryptocurrency exchange in March, claiming that they disregarded US rules and went to considerable measures to conduct business with US clients. Notwithstanding Binance’s insistence that it was operating within the law, the lawsuit listed a long list of purported transgressions that dated back to the unregulated, wild west days of cryptocurrency.

The lawsuit essentially claimed that the business was dodging all forms of regulatory examination. Numerous senior executives left Binance as a result, which had a negative impact on the exchange.

What comes next?

Richard Teng, a seasoned executive, is reportedly being considered to succeed CZ, according to Forbes, despite Binance not having released an official announcement on this development.

Teng is the organization’s current head of regional markets outside of the US and oversaw the business’s operations in Asia and Europe before. Teng is a front-runner, according to those familiar with the talks who spoke with Forbes, though talks are still in progress and things could change.

The business is also getting ready to reveal the composition of a new board to manage its governance, according to Forbes. As part of the settlement, persons familiar with the situation also stated that it would submit to a third-party monitor stationed in the United States.

Since this is a work in progress, more details will be included as they become available.

Author

Samson Ayodeji

I am literally obsessed with technology. I love writing about the latest news in technology in different markets, segments and sectors across the world.

View all posts