The CEO of Binance, a significant cryptocurrency exchange, is resigning after the company admitted to violating US anti-money laundering laws. Binance has agreed to a historic $4.3 billion fine, the largest imposed by the Treasury Department.
Treasury Secretary Janet Yellen criticized Binance for consistently ignoring US laws. Attorney General Merrick B. Garland highlighted the company’s illegal activities that contributed to its growth.
Zhao’s Resignation Announcement and Reflection on Binance’s Future
In a post on X, Zhao wrote, „Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do.”
Zhao noted, „I made mistakes, and I must take responsibility. This is best for our community, for Binance, and myself. Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with its deep bench.”
Zhao informed that Binance’s Head of Regional Markets, Richard Teng, will replace him as Binance’s CEO.
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Leadership Changes and Future Compliance Measures at Binance
Changpeng Zhao, the resigning CEO, will pay a $50 million fine and be replaced by Richard Teng. Binance will implement new compliance measures to adhere to US regulations, including an external monitor.
The Treasury Department underscores the importance of crypto platforms following strict customer identification laws. Binance’s failure to report suspicious transactions, including those linked to child exploitation, was a significant violation.
Legal Actions Against Top Crypto CEOs and Exchanges
CEOs of Binance and FTX have pleaded guilty to various charges. The SEC is investigating Kraken for potential legal violations. These actions reflect the government’s commitment to combating cryptocurrency-related crimes.