Binance CEO Changpeng Zhao has agreed to resign from his position at the world’s largest cryptocurrency exchange as part of a settlement with the U.S. Department of Justice.
Binance will pay $4.3 billion in fines as part of the agreement but will be able to continue operating in the US.
While acknowledging the substantial (record-breaking) financial commitment required, Binance reported revenues of $12 billion in 2022 and $20 billion in 2021.
CZ’s plans after taking some time for a break:
“After that, my current thinking is I will probably do some passive investing, being a minority token/shareholder in startups in areas of blockchain/Web3/DeFi, AI and biotech. I am happy that I will finally have more time to spend looking at DeFi,” — CZ.
The settlement addresses allegations from two U.S. investigations against Binance — for violations of anti-money laundering laws, sanctions, and failure to prevent terrorist financing.
However, separate claims by the Securities and Exchange Commission (SEC) remain unsettled. In June, the SEC filed 13 charges against Binance, primarily for offering and selling securities unregistered securities. The suit also threatens billions of dollars in fines.
“On that note, I am proud to point out that in our resolutions with the U.S. agencies they:
- do not allege that Binance misappropriated any user funds, and
- do not allege that Binance engaged in any market manipulation.
Funds are SAFU!” — CZ.
The settlement with DoJ permits the exchange to maintain operations, ensuring its survival and allowing a significant segment of the crypto space to progress. Thus, it may seem like a mutually beneficial outcome. Notably, markets hate uncertainty far more than penalties or shifts in leadership.
MetaTalks disclaims responsibility for any investment advice that may be contained in this article. All judgments expressed are solely the personal opinions of the author and the respondents. Any actions related to investing and trading in crypto markets involve the risk of losing funds. Based on the data provided, you make investment decisions in a balanced, responsible manner and at your own risk.