Binance founder Changpeng Zhao 'CZ' has resigned, and Richard Teng, former global head of Binance, has been appointed as the company's new CEO.
Changpeng Zhao has been found guilty of violating U.S. anti-money laundering laws, leading to his resignation. This is part of a $4.3 billion settlement to resolve investigations into cryptocurrency exchanges.
CZ admitted his fault in a Seattle court, agreeing to pay a personal fine of $50 million. Following his resignation, Richard Teng has taken over as the new CEO of Binance, a fact confirmed by Changpeng Zhao himself.
Changpeng Zhao was found guilty of violating American anti-money laundering laws.
Investigations revealed that Binance failed to report over 100,000 suspicious transactions associated with organizations classified as terrorist groups by the United States, including Hamas, Al-Qaeda, and the Islamic State of Iraq and Syria (ISIS).
Binance did not notify authorities of transactions with websites selling child sexual abuse material.
It was disclosed during the investigation that the cryptocurrency exchange Binance was among the largest recipients of ransomware proceeds.
Changpeng Zhao admitted his wrongdoings as CEO of the firm in court and is prepared to face penalties.
Following lengthy legal proceedings, Changpeng Zhao acknowledged the allegations against him in a Seattle court on November 21.
Changpeng Zhao publicly admitted his mistakes and resignation as the CEO of Binance in a post on 'X'.
The founder of Binance, Changpeng Zhao, has admitted to violating U.S. financial regulations as part of a settlement to resolve ongoing investigations. As per the agreement with the United States Department of Justice, Binance will pay a penalty of $4.3 billion.
While Changpeng Zhao will step down as CEO of Binance due to the settlement, he will retain his shares in the company. The financial position of Binance is expected to suffer significantly due to this settlement.
However, it may aid in improving Binance's relations with U.S. regulators and investigation agencies, potentially paving the way for a more favorable future in the American market. Despite admitting to the allegations and resigning as CEO, Zhao remains a major shareholder, likely retaining decision-making authority within the company.
Although Zhao has acknowledged his mistakes and exited the CEO role, he has managed to maintain his popularity within the community by openly accepting his faults, possibly limiting any substantial personal losses in this situation.
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