Binance CEO Admits Guilt, Resigns and Agrees to $4.3 Billion in Fines

Binance CEO Changpeng Zhao Pleads Guilty And Steps Down

In a surprising turn of events, Changpeng Zhao, also known as CZ, the founder and CEO of Binance, the world’s largest cryptocurrency exchange, has announced his decision to step down as CEO. This comes after he pleaded guilty to federal charges and agreed to pay a staggering $4.3 billion in fines.

Binance Holdings Limited, the entity that operates Binance.com, has also pleaded guilty and has agreed to pay over $4 billion to resolve the US Justice Department’s investigation into violations. According to a statement from the Justice Department, Zhao, who is a Canadian national, pleaded guilty to failing to maintain an effective anti-money laundering program, in violation of the Bank Secrecy Act (BSA), and has resigned as CEO of Binance.

Following Zhao’s resignation, Richard Teng, Binance’s former global head of regional markets, will take over as the exchange’s new CEO. Zhao expressed confidence in the company’s future, stating that “Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has.”

Despite stepping down as CEO, Zhao mentioned that he will remain available to the team to consult as needed, in line with the framework set out in the U.S. agency resolutions. Court documents revealed that Binance admitted to prioritizing growth and profits over compliance with U.S. law, and failing to implement controls and procedures to prevent money laundering.

Attorney General Merrick B. Garland commented on the case, stating, “Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed – now it is paying one of the largest corporate penalties in U.S. history.” He emphasized that using new technology to break the law does not make one a disruptor, but a criminal.

In his post, Zhao mentioned his plans for the future, stating that he will focus on passive investing and being a minority token/shareholder in startups in areas of blockchain, Web3, DeFi, AI, and biotech. He expressed contentment with this new venture, stating, “I can’t see myself being a CEO driving a startup again. I am content being a one-shot (lucky) entrepreneur.”

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