Binance CEO CZ to Step Down, Plead Guilty to Money Laundering
Changpeng “CZ” Zhao, founder and CEO of Binance, the world’s largest cryptocurrency exchange, has agreed to resign and plead guilty to allegedly breaking U.S. anti-money laundering laws.
Binance will be required to pay $4.3 billion to settle several criminal violations discovered by the US Department of Justice (DOJ), according to the court filing. Zhao consented to pay a fine of $50 million, which will be credited against the amount he owes the Commodity Futures Trading Commission.
Binance was charged with failing to maintain an adequate anti-money laundering program, operating an unauthorized money-transmitting firm, and violating sanctions law.
Binance can continue to operate under the terms of its plea agreement, but it must ensure that its operations comply with US anti-money laundering regulations.
The exchange will also be required to appoint an independent compliance monitor for three years and report to the US government on its compliance activities. Zhao is barred from “any present or future involvement in operating or managing” Binance for three years after the monitor is appointed.
Bloomberg reported on Monday that Binance might settle the DOJ’s claims with a $4 billion fine and a deferred prosecution deal. Reuters later confirmed that the statement would include information about the DOJ’s agreement with Binance. Zhao’s resignation was initially reported by the Wall Street Journal.
