Changpeng “CZ” Zhao is stepping down as CEO of Binance, in a huge $4 billion settlement with the Department of Justice (DOJ) and the Commodities Futures Trading Commission (CFTC). He founded the cryptocurrency exchange in July 2017, marking a significant shift in the crypto landscape.
Plea of guilt on anti-money laundering charges
Zhao will plead guilty to anti-money laundering charges laid out by the DOJ as part of the settlement. The plea is scheduled to take place in federal court in Seattle.
It underscores the gravity of the accusations against one of the most prominent figures in the crypto sectir.
SEC’s allegations
The Securities and Exchange Commission (SEC) charged Binance and CZ earlier in June. The regulator accused them of operating as an unregistered exchange and misleading investors.
SEC Chair Gary Gensler highlighted the alleged extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law. However, the SEC is not involved in this settlement.
$4 Billion settlement and the end of a long investigation
Todayq news reported that Binance is set to agree to a massive $4 billion settlement with the Justice Department. It will conclude old investigations that date back to at least 2018.
It’s noteworthy that last September, Binance announced the formation of a Global Advisory Board, led by former US Senator and Ambassador to China Max Baucus. The board also consisted influential figures like David Plouffe and Bruno Bézardz.
It was established at a time when legal challenges were piling up. Now, Changpeng Zhao’s resignation and the $4 billion settlement represent a watershed moment for Binance.
