Changpeng “CZ” Zhao, the CEO of Binance, has stepped down as part of a substantial $4 billion settlement with various United States regulatory agencies, including the Department of Justice.
This marks the conclusion of extensive investigations into Binance for alleged anti-money laundering violations and sanctions breaches.
In a statement released on Tuesday, Zhao acknowledged his mistakes and the necessity to take responsibility for them. “I made mistakes, and I must take responsibility.
This is best for our community, for Binance, and for myself,” Zhao stated on X, the platform formerly known as Twitter.
Binance, in a press release, admitted to lacking adequate compliance controls when it was initially launched and pledged to take responsibility for the oversight.
The company acknowledged that, as it rapidly expanded, it failed to implement compliance controls appropriate for its scale.
While Zhao steps down as CEO, he will continue to be the majority shareholder of Binance and serve as a resource for consultation on historical aspects of the business.
Richard Teng, a Binance executive, is set to succeed Zhao as CEO.
As part of the settlement, Zhao appeared in federal court in Seattle, pleading guilty to anti-money laundering and sanctions violations brought by the Department of Justice.
In addition to Zhao’s plea, Binance reached settlements with the Department of Justice, Commodities Futures Trading Commission, and the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC).
The terms of the settlement include a five-year monitorship, granting the Treasury Department access to Binance’s books and records.
