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In Response to Federal Accusations, Binance CEO Changpeng Zhao Enters a Guilty Plea and Resigns

In exchange for a $4.3 billion settlement with the Department of Justice, Binance CEO Changpeng Zhao is expected to enter a guilty plea to criminal charges and resign from his position. An investigation into the biggest cryptocurrency exchange in the world that lasted for several years has been concluded by the plea deal with the authorities.

In addition to knowingly breaking U.S. economic sanctions “in a deliberate and calculated effort to profit from the U.S. market without implementing controls required by U.S. law,” Zhao and others are accused of breaking the Bank Secrecy Act by neglecting to put in place an effective anti-money laundering programme. This information was provided by the FBI.
Richard Teng, the company’s previous global president of regional markets, has been designated the new CEO of Binance, according to a statement published by Zhao on X, formerly Twitter. Zhao claimed he had “made mistakes” and “must accept responsibility.”

Together, the Treasury Department, the Commodities Futures Trading Commission, and the Department of Justice brought legal action against Binance and its founder. It was conspicuously missing the Securities and Exchange Commission.

In a statement released on Tuesday, Treasury Secretary Janet Yellen said that the exchange served as a platform for over 100,000 transactions by criminal entities, many of which financed drugs and terrorists. More than 1.5 million virtual currency trades that broke US sanctions were also permitted by it.

Moreover, transactions linked to terrorist organisations like ISIS, Al Qaeda, Palestinian Islamic Jihad, and Hamas’ Al-Qassam Brigades were permitted. Yellen stated in the press release that Binance had “never filed a single notice regarding questionable activities.”

Source (CNBC)

SourceCNBC
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