Binance CEO and Founder Changpeng Zhao to Step Down, Plead Guilty in DOJ Deal
Binance CEO and Founder Changpeng Zhao to Step Down, Plead Guilty in DOJ Deal
In a significant development, Binance, the world's largest cryptocurrency exchange, has reached a deal with the U.S. Department of Justice (DOJ) that will see CEO Changpeng Zhao step down and plead guilty to criminal anti-money laundering charges. The deal is expected to allow Binance to continue operating, albeit under new leadership.
Zhao, who founded Binance in 2017, is scheduled to appear in Seattle federal court on November 21 to enter his plea. As part of the agreement, Binance will also plead guilty to a criminal charge and pay fines totaling $4.3 billion, which includes amounts to settle civil allegations made by regulators.
The settlement brings to an end a long-running investigation into Binance by the DOJ, which has been scrutinizing the exchange's compliance with anti-money laundering laws. The probe has cast a shadow over Binance even as it has grown in prominence in the wake of the collapse of FTX, one of its main competitors.
While Zhao will remain the majority owner of Binance, he will be prohibited from holding an executive role at the company. The outcome of the case mirrors an earlier settlement reached with the executives of BitMEX, a Seychelles-based cryptocurrency exchange. BitMEX's former CEO, Arthur Hayes, pleaded guilty to violating anti-money laundering laws and was later sentenced to two years probation, avoiding a potential prison term of six to twelve months.
The DOJ has declined to comment on the settlement.
Key Takeaways:
- Binance CEO Changpeng Zhao will step down and plead guilty to criminal anti-money laundering charges in a deal with the DOJ.
- Binance will also plead guilty to a criminal charge and pay fines totaling $4.3 billion.
- The outcome of the case resembles an earlier settlement reached with the executives of BitMEX.
- The DOJ has declined to comment on the settlement.
Source: The Wall Street Journal