Binance co-founder Changpeng Zhao and his firm have faced huge challenges in recent weeks
Changpeng Zhao, the co-founder and CEO of Binance, the world's largest cryptocurrency exchange platform by trading volume, has resigned. AFP

KEY POINTS

  • Zhao pleaded guilty to violating the Bank Secrecy Act and anti-money laundering and U.S. sanctions violations
  • In addition to pleading guilty to the charges filed by the U.S. government, Zhao is required to pay a $50 million fine
  • The settlement agreement will end investigation by the U.S. Justice Department, Treasury Department and CFTC

Changpeng Zhao (CZ), the co-founder and CEO of Binance, the world's largest cryptocurrency exchange platform by trading volume, has stepped down from his position after agreeing to plead guilty and pay a $50 million fine as part of a settlement deal with the U.S. Department of Justice.

In a federal court in Seattle on Tuesday, Zhao pleaded guilty to violating the Bank Secrecy Act and anti-money laundering and U.S. sanctions violations. This sacrifice was deemed necessary in order for the exchange to continue its operations.

In addition to pleading guilty to the charges filed by the U.S. government, Zhao is required to pay a $50 million fine. Furthermore, Binance has also agreed to pay $4.3 billion fine, making it one of the largest corporate agreements in the history of the United States.

The settlement agreement included the Justice Department, Treasury Department and Commodity Futures Trading Commission (CFTC) bringing an end to their years-long investigation of the exchange.

Following the settlement news, Zhao announced his resignation as the CEO of Binance. He acknowledged the emotional struggle of letting go of the company he built from the ground up but believed that it was the right decision to make.

"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. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself," Zhao said.

The former Binance CEO also revealed the name of his replacement, who not only has an impressive resume, but is also described by Zhao as a "highly qualified leader" with decades of financial and regulatory experience.

"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. I'm pleased to announce that @_RichardTeng, our now former Global Head of Regional Markets, has been named the new CEO of Binance today," Zhao said.

"Richard is a highly qualified leader and, with over three decades of financial services and regulatory experience, he will navigate the company through its next period of growth. He will ensure Binance delivers on our next phase of security, transparency, compliance, and growth," he added.

"Prior to joining Binance, Richard was CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM); Chief Regulatory Officer of the Singapore Exchange (SGX); and Director of Corporate Finance at the Monetary Authority of Singapore. With Richard and the entire team, I'm confident that the best days for @Binance and the crypto industry lay ahead," Zhao further said.

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