Co-founder and CEO of Binance, Changpeng Zhao (CZ), is reportedly set to resign from his position on Tuesday amid reports of a $4.3 billion settlement between Binance and the United States Department of Justice (DOJ).
According to Bloomberg, Zhao plans to plead guilty to one criminal charge related to violating U.S. anti-money laundering laws. This move comes as part of a broader settlement, allowing Zhao to retain his majority stake in Binance but relinquishing executive control.
The settlement, which includes a $4.3 billion fine on Binance, aims to resolve a long-standing investigation into the crypto exchange’s operations in the United States.
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Challenges in Binance Compliance Landscape
In March, the Commodity Futures Trading Commission (CFTC) filed a lawsuit alleging that Binance and Zhao facilitated business with U.S. customers without complying with the country’s regulations. The suit outlined various alleged offenses, highlighting regulatory issues in Binance’s operations.
Subsequently, in June, the Securities and Exchange Commission (SEC) filed its own lawsuit, accusing Binance of creating a deceptive U.S. trading operation that purportedly followed regulations but allowed American customers to trade on less regulated overseas exchanges.
The anticipated settlement, expected to be announced by Attorney General Merrick Garland, involves a significant fine and would pave the way for Binance to continue operating without Zhao’s direct involvement. The regulatory challenges have led to the departure of several top executives from Binance.
While an official statement from Binance is pending, Forbes reports that Richard Teng, the company’s long-time executive and head of regional markets outside the U.S., is being considered as a potential successor to CZ. Discussions are ongoing, and the company is also said to be preparing to announce new board members for governance oversight. Additionally, Binance will reportedly submit to a U.S.-based third-party monitor as part of the settlement terms.
This is a developing story, and more information will be provided as it becomes available.
