Binance Founder CZ Resigns as CEO Amid $4.3B DOJ Settlement, Maintains Stake
Summary:
Binance founder, Changpeng "CZ" Zhao, has agreed to resign as CEO amid a $4.3 billion settlement with the U.S. Department of Justice. While CZ is set to admit guilt to multiple charges, he will maintain his majority stake in Binance but cannot hold any executive position. This plea deal however, won't affect any ongoing litigation with the U.S. Securities and Exchange Commission.
Changpeng "CZ" Zhao, the founder of Binance, has consented to resign from his role as CEO of the crypto exchange amidst impending news of a $4.3 billion settlement from the U.S. Department of Justice (DOJ). As reported by The Wall Street Journal, CZ is set to acknowledge guilt on several accusations raised by the DOJ. His confession is scheduled for a federal court hearing in Seattle on Tuesday afternoon, as stated by the Journal. The report also suggests he will admit to a single criminal charge. Although CZ will maintain his controlling interest in Binance as part of the agreement, his capacity to serve in a managerial role in the company will be disallowed. The Wall Street Journal additionally states that the agreed admission of guilt does not impact ongoing legal proceedings with the U.S. Securities and Exchange Commission (SEC), as a settlement for the case launched against Binance by the commission in June is not covered. This story is still unfolding, and future updates will be appended as they emerge.
Published At
11/21/2023 5:29:08 PM
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