Binance's Former CEO Changpeng Zhao Steps Down, Admits to Regulatory Neglect in $4.3B Plea Deal
Summary:
Changpeng “CZ” Zhao, the former CEO of Binance, resigned on 21st November after admitting to disregarding anti-money laundering laws. He praised his team and hinted at potential restructuring in a social media message and urged employees to support incoming CEO, Richard Teng. Upon stepping down, CZ agreed to pay a $175 million bail and return to the U.S. ahead of his February 2023 sentencing. Additionally, he deposited $15 million into a separate trust account, to be forfeited if he breaks his bond terms. Binance and the U.S. reached a $4.3 billion settlement and plea deal with CZ, concluding several investigations from the past year.
In a recent development, Changpeng “CZ” Zhao, the preceding CEO of Binance, relinquished his position on 21st November, confessing his disregard of anti-money laundering regulations. Following this, he conveyed a message to his company via a social media platform. The message attracted attention on 22nd November where CZ expressed admiration for his team, boasting of their work overall and his hopes for the future. He reassured that though “Binance will be fine,” indications of restructuring were present. He also quoted a popular line from the science-fiction franchise, Star Trek, “l need everyone to continue performing admirably”, urging his staff to show support and assist the newly appointed CEO, Richard Teng. Teng, earlier A regional markets head outside of the US at Binance, was applauded by CZ as a "highly talented leader" who will guide the company through its forthcoming phase of development. Additionally, it was reported that CZ will be part of an imminent town hall, for the official transfer of power to Teng. In regards to legal matters, CZ has consented to pay a bail of $175 million and to return to the United States 14 days before his sentencing on February 23, 2023, allowing him the chance to return to Dubai, where he resides. Alongside this, the past CEO of Binance put $15 million into an isolated trust account, promising to surrender the amount if he violates his bond terms. A settlement and plea deal for CZ amounting to $4.3 billion were agreed upon by Binance with the U.S., thereby ending several civil and criminal inquiries that troubled the exchange in the past year.
Published At
11/22/2023 8:40:12 AM
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