Binance CEO Steps Down and Pleads Guilty as Part of $4.3 Billion Settlement
Binance is the world's largest crypto exchange, and CEO Changpeng "CZ" Zhao is the most powerful player in the industry. This deal puts an end to a years-long investigation into Binance.
CZ agreed to pay $50 million in fines and is prohibited from operating or managing the business for three years. Binance will pay more than $4.3 billion as part of the settlement agreement.
What they're saying:
Treasury Secretary Janet Yellen said that Binance turned a blind eye to its legal obligations in the pursuit of profit. She said that Binance's willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.
Binance named Richard Teng, its now-former global head of regional markets, as its new CEO.
What this means:
This is a huge development for the crypto industry. It remains to be seen how this will impact Binance's business.
It will be interesting to see how Binance moves forward from this.
In addition to the above, here are some other interesting facts about this story:
The settlement is the largest ever levied against a crypto exchange.
The DOJ complaint alleges that Binance failed to implement basic anti-money laundering controls.
Binance has been under scrutiny from regulators in the United States and other countries for several years.
The settlement is a major victory for the DOJ and other regulators who have been cracking down on illicit activity in the crypto industry.