Changpeng Zhao, the head of Binance, the world’s largest cryptocurrency exchange, is ready to plead guilty to violating the requirements of US criminal law in the field of anti-money laundering. Wall StreetJournal. The entrepreneur announced that he resigned so that the stock exchange could continue its activities.
Zhao’s position will be filled by Richard Teng, Binance’s head of Asia, Europe and the Middle East.
“Today I resigned as CEO of Binance. <…> I made mistakes and I must take responsibility. This is what’s best for our community, Binance, and me,” Zhao said on social media X.
The founder of the crypto exchange noted that he plans to take a break from his job because he has not had a single day off in the last 6.5 years.
The US Department of Justice held a press conference on November 21 with the participation of US Treasury Secretary Janet Yellen, Deputy Attorney General Lisa Monaco and CFTC Chairman Rostin Behnam. According to the previously announced terms of the agreement, the exchange will pay a penalty of $4.3 billion. Allegations of violations of banking secrecy and anti-money laundering laws have emerged against Binance.
According to The New York Times, Binance’s founder will personally pay a $50 million fine as part of the agreement (in addition to a total fine of $4.3 billion).
The essence of the accusations
In June, the U.S. Securities and Exchange Commission filed a lawsuit against Binance and Zhao, accusing the crypto exchange’s management of trading securities without proper registration, as well as “misleading” investors about their oversight mechanisms.
The commission also highlighted that Binance and Zhao publicly stated that US customers were prohibited from trading on the exchange, but allegedly bypassed their own controls and secretly allowed US customers to participate in trading.
Last September, Binance announced the establishment of a Global Advisory Council led by former US Senator and Ambassador to China Max Baucus. Other members include David Plouffe, President Barack Obama’s former campaign manager, and Bruno Besard, former head of the French Treasury.
About Binance
Zhao founded cryptocurrency exchange service Binance in 2017 and built it into a major hub for the global cryptocurrency market. Before Binance, the businessman spent a long time developing software for futures trading on Wall Street.
The crypto exchange is not a single legal entity; It is a combination of multiple national companies, each operating in a limited region.
Binance management in September made a decision Leave the Russian market completely and sell your business in the country to CommEX.
Zhao their lives In the United Arab Emirates last year practically did not leave this country. The UAE and the US do not have a mutual extradition agreement, but in 2022 the countries signed an agreement that expands the ability to share information between the two states’ law enforcement agencies. UAE authorities continue to support crypto companies even as countries like China and the US crack down on the unregulated sector.
Previously, the US Attorney General’s Office filed a lawsuit against the executives of BitMEX, a Seychelles-based cryptocurrency derivatives exchange. Former CEO Arthur Hayes pleaded guilty to violating anti-money laundering laws. The court sentenced him to two years of probation, and his guilty plea avoided a possible prison sentence of six to 12 months.