Changpeng Zhao, the CEO of the world’s biggest cryptocurrency exchange, Binance, announced on Wednesday via X, formerly known as Twitter, that he is stepping down from his position of Binance CEO.
Binance CEO Changpeng Zhao Resigns Over Money Laundering Scandal
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CZ has taken this step after being found guilty of violating the US anti-money laundering laws. Zhao has shared on the X that it is not easy for him to let go of these emotions, but he has made mistakes and must take responsibility for them. He further said this is best for our community, Binance, and himself.
Zhao further said that Binance’s Head of Regional Markets, Richard Teng, will replace him as the new Binance CEO. Before joining Binance, Richar was the CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market, Director of Corporate Finance at the Monetary Authority of Singapore, and Chief Regulatory Officer at the Singapore Exchange.
CZ further revealed his plans after this. He said he had not taken a break for six and half years, so he will now take one.
So why has Zhao taken this step? As per reports, Binance has violated the US anti-money laundering and sanctions laws because it has failed to report over 100,000 suspicious transactions with organizations that have been declared as terrorist groups by the US, such as al Qaeda, Hamas, and the Islamic State of Iraq and Syria.
Zhao would have to pay $50 million personally as an agreement to settle this, which is the most significant corporate penalty in the history of the US. US Attorney General Merrick Garland has said that Binance has made it easy for terrorist groups to move their stolen funds.
The New York Times has reported that the Justice Department also seeks an 18-month jail sentence for the former Binance CEO, the highest sentence allowed under federal guidelines.
Now, Binance has to pay $1.81 billion within 15 months, and apart from this, $2.51 billion will also be forfeited as per the deal.
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