He has also resigned from his position at the crypto exchange giant, which is expected to pay one of the largest corporate penalties in US history
Binance, the world’s largest cryptocurrency trading platform, is in hot water. Its CEO, Changpeng “CZ” Zhao, has pled guilty to violating United States laws in the battle against money laundering. The company now faces a staggering $4.3 billion fine on top of Zhao’s resignation.
This development comes after allegations of Binance facilitating illegal activities, including aiding terrorists, hackers and child abusers, and disregarding US sanctions.
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Since its founding in 2017, Binance has come to dominate the crypto trading market and made Zhao a billionaire. But the company faced significant challenges when the crypto markets crashed and regulators began investigating its operations.
The US government mandated that Binance report any suspicious activities on its platform and thoroughly review past transactions for signs of money laundering or other crimes.
Binance also ignored US sanctions, which are rules that ban trade with certain countries or people, such as Iran and North Korea. The crypto exchange must now report any suspicious activities on its platform to the authorities.
Sentencing for Zhao will occur at a later date. He is currently prohibited from participating in the company’s operations.
Richard Teng, Binance’s head of regional markets outside the US, is being considered to potentially replace him in the CEO role. Teng previously led the company’s operations in Europe and Asia.