Binance CEO quits after pleading guilty

The US Department of Justice has officially confirmed that the founder of the Binance crypto exchange, Changpeng Zhao, confessed to violating the requirements of the American Bank Secrecy Act related to the fight against money laundering.

The Department accused the crypto exchange of the lack of effective programs to combat the financing of terrorism and money laundering. There were also concerns that Binance could provide access to trading on its platform for individuals from countries under US sanctions.

According to The Wall Street Journal, Changpeng Zhao has already resigned as CEO of Binance, admitting his responsibility for non-compliance with anti-money laundering laws of the United States. Under the terms of the agreement with the US Department of Justice, Binance agreed to pay fines totaling $4.3 billion to continue its activities in the US market.

The New York Times, citing court documents, clarifies that as part of the agreement, Zhao will personally pay a fine of $50 million. This agreement will allow him to retain a controlling stake in Binance, although he will no longer hold a senior position in the company. The WSJ emphasizes that this agreement does not include a settlement with the U.S. Securities and Exchange Commission (SEC), which in June accused Binance of violating investor protection laws.

Recall that at the end of September 2023, Binance announced its departure from Russia and the sale of the Russian business to CommEX. Binance then stated that the transition of users to another platform, as well as the process of disconnecting from Binance, would take up to one year.