The CEO of Binance, the renowned global cryptocurrency exchange, is set to step down following the company’s admission of guilt on Nov. 21. Binance has pleaded guilty to violating the Bank Secrecy Act, an anti-money laundering law, and other charges, resulting in a settlement of over $4.3 billion, according to NBC News. This fine stands as the largest penalty ever imposed by the Treasury Department, marking a pivotal moment in the realm of digital currencies.
Treasury Secretary Janet Yellen condemned Binance for its “consistent and egregious violations of U.S. anti-money laundering and sanctions laws” in prepared remarks. The Justice Department,
in a news release, detailed that Changpeng Zhao, the CEO, has pleaded guilty not only to these charges but also for failing to uphold an effective anti-money laundering program. Consequently, Zhao will relinquish his role as chief executive.As part of the settlement, Zhao has accepted a $50 million fine, underscoring the gravity of the violations. Attorney General Merrick B. Garland emphasized the enormity of the situation, stating, “Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed — now it is paying one of the largest corporate penalties in U.S. history.”
Confirming his departure, Zhao
took to the platform X, expressing his acknowledgment of mistakes and paving the way for Richard Teng, Binance’s head of regional markets, to assume the role of CEO. Zhao reassured stakeholders that, despite his exit from the chief executive position, he would remain a shareholder and offer consultative support to the leadership team. He also emphasized that the charges did not involve any allegations of misusing customer funds or engaging in market manipulation.The settlement terms also mandate Binance to submit to oversight by a third-party monitor, administered by the Treasury’s Financial Crimes Enforcement Network. This external monitor will scrutinize Binance’s systems, transactions, and accounts to ensure compliance with federal regulations.
In response, Binance released a blog post taking responsibility for its mistakes and expressing optimism about the company’s future. The post stated, “These resolutions acknowledge our company’s responsibility for historical, criminal compliance violations, and allow our company to turn the page on a challenging yet transformative chapter of learning and growth.”
This adds to the recent turbulence in the cryptocurrency world, marked by the collapse of major exchanges. Despite this, the value of Bitcoin, the leading cryptocurrency, has surged over the past year, trading at around $37,000 as of Tuesday.
These guilty pleas
follow closely on the heels of legal troubles for Zhao’s crypto counterpart, Sam Bankman-Fried, indicating a heightened scrutiny of white-collar cryptocurrency crime by the government. The message is clear: utilizing new technology to break the law does not confer disruptor status but rather criminal liability, as highlighted by Attorney General Garland.RELATED CONTENT: Founder Launches Black Crypto News Platform To Empower And Educate The Black Community In Web 3