[NEWS] Binance CZ resigns; to pay fine of approximately 640 billion yen in settlement with US Department of Justice

CZ (Changpeng Zhao), CEO of major cryptocurrency exchange Binance, announced on the 22nd that he has resigned as the company's CEO.

In June of this year, Binance and CZ were sued by the SEC (US Securities and Exchange Commission) and the CFTC (US Commodity Futures Trading Commission) for allegedly violating securities laws, and the US Department of Justice has been investigating them.

CZ said, "I made a mistake," and said he would step down as CEO to take responsibility. He also said that stepping down as CEO is in the best interest of Binance, its community, and himself.

It was also announced that Richard Teng, Global Head of Regional Markets at Binance, will take the role of new CEO.

Teng has a career spanning more than 30 years in the financial industry, and before joining Binance, he served as CEO of the Abu Dhabi Global Market (ADGM) financial services regulator. It is believed that he was appointed with an emphasis on communication with regulators.

CZ revealed that after taking a break, he plans to invest in startups in the blockchain, Web 3.0, and AI fields. He is particularly focused on the DeFi field.

Furthermore, he was negative about himself serving as CEO of Binance or any startups in the future, suggesting that he will step down from the public eye.

The US government announces a settlement

Attorney General Merrick Garland announced on the 21st that he had reached a settlement with Binance and CZ.

Several overseas media outlets have reported that a plea deal was reached between Binance and the US Department of Justice, and that the case is moving towards a settlement.

As a settlement, Binance agreed to pay approximately $4.3 billion (approximately 639.3 billion yen) to the judicial and financial authorities. According to the Department of Justice, this is the largest fine ever imposed on a company in the United States.

CZ himself is also expected to pay a fine of $50 million (approximately 7.4 billion yen). In addition, CZ may serve 18 months in prison as a result of the plea agreement.

The charges that Binance and CZ pleaded guilty to include anti-money laundering, bank secrecy, and enabling U.S. citizens to trade with countries under U.S. sanctions, such as Iran.

Complete withdrawal from the U.S.

The settlement also includes Binance's complete withdrawal from the U.S.

Meanwhile, Treasury Secretary Janet Yellen said that Binance US, a U.S. corporation, will not be affected by the withdrawal of the parent company, Binance Global.

Binance US is operated by BAM Trading Services, a subsidiary of Binance, and is licensed, among other reasons.

Going forward, Binance will be supervised by a sanctions compliance program monitor for the next five years. CZ was also barred from any involvement in the operation or management of Binance for the next three years.

Reference:CZX,Binance announcement,court documents
Image: Shutterstock

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