Changpeng Zhao has left his position: Binance agrees to U.S. Department of Justice deal
Changpeng Zhao has left his position: Binance agrees to U.S. Department of Justice deal
Binance's founder and CEO, Changpeng Zhao, left his post as part of an agreement to settle allegations that he violated U.S. law.
The head of Binance admitted that the exchange violated U.S. anti-money laundering and sanctions laws and agreed to pay $4.3 billion to settle the charges. In addition, on Tuesday, the Seattle court ordered Zhao to pay an individual fine of $50 million, which is a favorable deal for him since the sanctions did not affect his huge fortune and stake in Binance.
Recall that the U.S. Department of Justice accused Binance of violating U.S. anti-money laundering law and believes that the exchange failed to report more than 100,000 suspicious transactions with organizations that Washington considers terrorist, including Hamas, al-Qaeda, and the Islamic State of Iraq and Syria.
"Binance made it easier for criminals to move stolen funds and illicit proceeds to its exchanges," said U.S. Attorney General Merrick Garland.
It is worth noting that Changpeng Zhao pleaded guilty during the trial, which he confirmed on his X (Twitter) page: "I made mistakes, and I have to take responsibility."
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In addition, Zhao stated that Richard Teng has been confirmed as the company's CEO.
Richard Teng previously held the position of Binance's Head of Regional Markets, and he is also the former CEO of financial services regulator ADGM.
"I am honored to join Binance as its new CEO. We operate the world's largest cryptocurrency exchange by volume. The trust placed in us by our 150 million users and thousands of employees is a responsibility I take seriously and cherish," Teng commented on his appointment.
However, the new head said that his decisions will initially focus on three points:
- Reassuring users that they can have confidence in the company's financial strength, security, and safety.
- Working with regulators around the world to maintain high standards that encourage innovation while providing important consumer protections.
- Working with partners to drive growth and adoption of Web3.
Legal expert Yesha Yadav says that despite the hefty fines, Binance will be able to deal with the fallout. The recent deal and its terms seem to be aimed at allowing Binance to continue operating, but without Changpeng Zhao.
While many cryptocurrency market participants don't believe that the Binance settlement will have a major impact on digital assets, the more than 9% drop in BNB (the underlying cryptocurrency of the Binance exchange) suggests otherwise.
Read also: Bittrex Global announced its closure.
