Binance CEO Changpeng Zhao resigns after pleading guilty to money laundering violations, terror connections stating ‘I made mistakes..,’ Binance CEO Changpeng Zhao has stepped down from his position after pleading guilty to violating U.S. anti-money laundering laws. Richard Teng, Binance’s Head of Regional Markets, will replace him as CEO.
The largest cryptocurrency exchange in the world, Binance’s CEO resigns Changpeng Zhao resigns on Wednesday. This comes right after Zhao pleaded guilty to violating U.S. anti-money laundering laws, prosecutors said.
Binance CEO resigns
In a post on X, Zhao wrote, “Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do.”
Zhao noted, “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself. Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has.”
Zhao informed that Binance’s Head of Regional Markets Richard Teng will replace him as the CEO of Binance.
“As a shareholder and former CEO with historical knowledge of our company, I will remain available to the team to consult as needed, consistent with the framework set out in our U.S. agency resolutions,” Zhao added.
Binance CEO Zhao on his resignation
Zhao said that he would be taking a break and informed that he had not had a real phone break for the last 6 and half years.
He said, “I can’t see myself being a CEO driving a startup again. I am content being a one-shot (lucky) entrepreneur. Should there be listeners, I may be open to being a coach/mentor to a small number of upcoming entrepreneurs, privately. If for nothing else, I can at least tell them what not to do. On that note, I am proud to point out that in our resolutions with the US agencies they:
- do not allege that Binance misappropriated any user funds.
- do not allege that Binance engaged in any market manipulation.
Funds are SAFU! With that, I look forward to seeing the new leadership take the reins. Please join me in congratulating Richard on his well-deserved promotion.
Onwards! CZ,” he said in his post.
Binance violating U.S. laws
As reported citing authorities, Binance violated U.S. anti-money laundering and sanctions laws by failing to report more than 100,000 suspicious transactions with organizations designated as terrorist groups by the U.S., including Hamas, al Qaeda, and the Islamic State of Iraq and Syria.
Prosecutors hailed the agreement, which would see Zhao personally pay $50 million, as one of the highest corporate penalties in US history. It is yet another setback for the crypto business, which has been plagued by probes, and follows the recent fraud conviction of FTX creator Sam Bankman-Fried.
Binance CEO’s trial
According to the New York Times, the Justice Department, which negotiated the settlement with the Commodity Futures Trading Commission (CFTC) and the Treasury Department, is seeking an 18-month jail sentence for Zhao, the maximum allowed under federal guidelines.
Binance will pay $1.81 billion within 15 months, and a further $2.51 billion forfeiture as part of the deal, prosecutors said.
Zhao, a billionaire, was born in China and migrated to Canada when he was 12 years old. On Tuesday afternoon, he pled guilty in a Seattle court.
According to Forbes, Zhao’s net worth is $10.2 billion.
The CFTC charged Binance with civil fraud in March, stating that the company failed to develop an adequate anti-money laundering program to detect and prevent terrorist financing.
