Cryptocurrency titans are falling, and the latest to do so is Changpeng Zhao, with the Chinese executive resigning his post as Binance's CEO and is set to plead guilty to the federal charges against his name. However, the company chose a scenario in which Binance will continue its operations in the United States, and this is through the whopping $4.3 billion settlement with the US Department of Justice (DOJ).
It is almost a similar case to Sam Bankman-Fried and FTX, but in Binance's case, it did not file for bankruptcy now, with no news yet regarding missing customer funds.
Binance CEO Changpeng Zhao Resigns, To Plea Guilty
(Photo : David Ryder/Getty Images)
Changpeng Zhao is now stepping down from his role as Binance's CEO and he is also set to plead guilty for his crimes involving federal money laundering charges, taking place in the following events reports CNBC. Binance and Zhao's camp already reached a plea deal with the US government regarding this case, and it is set to end the multi-year investigation by Justice.
It was revealed by Zhao that he will be replaced by Richard Teng as the new CEO of Binance, known for his previous role as the Global Head of Regional Markets. CZ was said to have violated and caused a financial institution to violate the Bank Secrecy Act.
The report also noted that Zhao was banned from getting involved with Binance for three years after his sentencing, after failing to establish anti-money laundering measures.
Read Also: SEC Applies for an Emergency Motion to Prevent Binance US Access to Customer Assets
Binance Settles $4.3 Billion to US DOJ
As part of its continued operations and agreement with the US government, Binance will forfeit $2.5 billion and pay $1.8 billion in settlement to the Justice Department. Personally, Zhao is asked to pay $50 million.
However, Zhao will not be the only executive facing charges, as Samuel Lim, Binance's former compliance chief, is also set to receive suits as part of the deal.
The End of an Era for Zhao, Binance?
Changpeng Zhao, a.k.a. CZ, has been a remarkable executive at Binance, with him at the helm through the thick and thin of the company, growing it to become one of the largest crypto exchange platforms in the world. He was widely regarded for the many predictions he had in the crypto industry but was also one of the skeptics of Bitcoin's rally past $69,000.
There were many disputes and scrutinies that Binance faced over the years, with many regulators pursuing the platform because of their license problems, operations, and more. At one point, the SEC went full blast against Zhao and Binance, claiming that they grew the company while placing investors' assets at a massive risk, going as far as evading the law.
In the most recent developments in Binance's case, it was given a chance to continue its operations by subjecting it to a settlement amounting to $4 billion, with its negotiations now meeting its conclusion. Binance will continue its operations after it agreed to settle the $4.3 billion, but it will move forward without CZ, as he is set to face the law's wrath, reportedly pleading guilty to the charges against him.
Related Article: Binance DOJ Lawsuit Settlement: $4B Reportedly Set for Crypto Platform's Continued US Operations
