Binance chief changes and the AML case unfold
Changpeng Zhao, the founder and former chief executive of Binance, faces a guilty plea related to violations of United States anti money laundering requirements. The development underscores ongoing regulatory scrutiny of the world’s largest cryptocurrency exchange and the broader crypto sector in North America. According to reports, Zhao has stepped down from his role to allow Binance to continue operations without disruption. Source: Wall Street Journal and related press briefings.
Richard Teng, who leads Binance’s operations across Asia, Europe, and the Middle East, is set to take Zhao’s place as the company’s CEO. Zhao publicly announced his resignation on social media, stating that he acknowledged mistakes and must take responsibility for them. He described the move as best for the community, Binance, and himself, and noted that a long stretch without a day off had prompted his decision to take a break.
Officials from the United States Justice Department held a press conference on November 21 with senior figures such as Janet Yellen, Lisa Monaco, and Rostin Behnam. The agreement on the table includes a penalty of four point three billion dollars, addressing alleged violations of banking secrecy and anti money laundering rules by Binance.
Reports from The New York Times indicate Zhao will personally contribute a five hundred thousand dollar fine as part of the broader settlement, alongside the massive four point three billion dollar penalty.
The core accusations and legal context
Earlier in the year, the U.S. Securities and Exchange Commission filed a lawsuit against Binance and Zhao alleging the trading of securities without proper registration and claims of misleading investors about oversight measures. The commission also charged that although Binance and Zhao publicly banned US customers from using the platform, those restrictions were circumvented and US traders were still able to participate on the exchange.
Binance announced the formation of a Global Advisory Council led by former U.S. Senator and Ambassador to China Max Baucus in September. The council also includes figures such as David Plouffe, a former campaign manager for a presidential campaign, and Bruno Besard, a former head of the French Treasury. These moves aim to bring governance perspectives from multiple regions into the company’s strategy.
About Binance
Binance was founded in 2017 by Zhao and rapidly grew into a central hub for the global crypto market. Before founding Binance, Zhao spent significant time developing software for futures trading on Wall Street. The exchange is not a single legal entity but a network of affiliated entities operating in distinct regions and under different regulatory regimes.
In a strategic shift, Binance decided to curtail its presence in the Russian market and arranged the sale of its Russia-based operations to another firm. Zhao has spent considerable time in the United Arab Emirates, a region known for crypto friendly regulation relative to stricter markets elsewhere. The UAE has formed information-sharing agreements with the United States to support law enforcement while pursuing growth in the crypto sector. This area continues to attract crypto firms despite broader global crackdowns in various jurisdictions.
Historical comparisons note that other industry actions have drawn attention, such as litigation involving BitMEX, a Seychelles-based crypto derivatives platform. Its former chief executive pleaded guilty to anti-money laundering violations, receiving probation as part of a broader enforcement narrative shaping industry conduct and compliance standards.