Heaptalk, Jakarta — The Founder of CEO Binance, Changpeng Zhao, is reportedly stepping down as the leader of this crypto exchange company after he confessed to violating United States anti-money laundering laws.
“Today, I stepped down as CEO of Binance. Admittedly, this decision was not easy to let go of emotionally. Nevertheless, I know this move is the right thing to do. I made mistakes, and I must take responsibility. This resolution is best for our community, Binance, and myself,” The CEO, who is usually called CZ, said in a written statement on his social media Twitter (X). (11/22)
CZ’s resignation as CEO is part of an agreement to resolve the United States Department of Justice’s investigation into Binance’s illegal activities. As is well known, he has been involved in money laundering activities through Binance. This admission was made before a federal judge in Seattle on November 21st, 2023, as The New York Times reported.
In more detail, he violated anti-money laundering rules by failing to report approximately 100,000 transactions deemed suspicious and involving organizations the US government designated as terrorist. On the other hand, this crypto exchange was also accused of being an exchange that keeps assets from extortion by hackers who carried out ransomware attacks.
As an effect, Binance CEO Zhao must pay a fine of US$50 million (around Rp. 778 billion) as part of an admission of his mistakes. This fine is claimed to be different from the legal settlement he has reached with the United States Department of Justice (DOJ), which attains US$4.3 billion, around Rp66.9 trillion.
Previously, the DOJ had conducted a lengthy investigation into Binance regarding money laundering, tax evasion, and illegal asset trading issues. Following this complicated matter, the former Binance’s CEO was reportedly threatened with imprisonment of 18 months, according to the maximum limit set by federal law.
In replacing his position as the leader of this crypto exchange, CZ disclosed that the management would appoint the former Global Head of Regional Markets, Richard Teng, as the new CEO of Binance today. Based on Zhao’s statement, Richard is a highly qualified leader with over three decades of financial services and regulatory experience.
“He will navigate the company through its next period of Binance’s outgrowth. Richard will ensure the company delivers the next security, transparency, compliance, and enhancement phase,” added CZ.
