Changpeng Zhao, also known as CZ, pleaded guilty in November 2023 to a felony charge of failing to maintain an effective anti-money laundering program at Binance, the world’s largest cryptocurrency exchange. As part of the plea deal, Zhao also agreed to step down as CEO of Binance and pay a $50 million fine. The Department of Justice and the Securities and Exchange Commission also fined Binance $4.5 billion for violating anti-money laundering and securities laws.
The charges against Zhao and Binance stemmed from a years-long investigation into the cryptocurrency exchange’s business practices. Investigators found that Binance had failed to properly verify the identities of its customers, which made it easy for criminals to use the exchange to launder money and evade sanctions.
Zhao’s guilty plea and the subsequent fines are a major blow to Binance, which has been one of the most successful and controversial cryptocurrency companies in the world. The fines are also a significant victory for regulators, who have been increasingly concerned about the potential for cryptocurrency to be used for illicit activities.
It is unclear what the long-term impact of the charges will be on Binance. The company has said that it is committed to complying with regulations and that it is working to improve its anti-money laundering program. However, some experts believe that the fines and Zhao’s resignation could damage Binance’s reputation and make it more difficult for the company to attract new customers.
Richard Teng was appointed CEO of Binance in May 2023, replacing Changpeng Zhao. Teng is a former civil servant and financial regulator who has extensive experience in the cryptocurrency industry. He is seen as a capable and respected leader who can guide Binance through its next phase of growth.
