Changpeng Zhao, the renowned founder and CEO of Binance, the world’s largest cryptocurrency exchange, has tendered his resignation and is reported to be on the verge of pleading guilty to violations of U.S. money laundering regulations.
This significant decision comes as part of a broader agreement aimed at securing the ongoing operations of the exchange, according to sources close to the matter cited by the Wall Street Journal.
The settlement in question is currently under negotiation with both the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC).
Notably, the Securities and Exchange Commission (SEC) has conspicuously refrained from involvement in these proceedings.
Effective immediately, X. Richard Teng is set to assume leadership responsibilities within the company. Read his letter of resignation.
What Changpeng Zhao said
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. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for 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 the deep bench it has. I’m pleased to announce that @_RichardTeng, our now former Global Head of Regional Markets, has been named the new CEO of Binance today.
Richard is a highly qualified leader and, with over three decades of financial services and regulatory experience, he will navigate the company through its next period of growth. He will ensure Binance delivers on our next phase of security, transparency, compliance, and growth.
Prior to joining Binance, Richard was CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM); Chief Regulatory Officer of the Singapore Exchange (SGX); and Director of Corporate Finance in the Monetary Authority of Singapore. With Richard and the entire team, I’m confident that the best days for @Binance and the crypto industry lay ahead.
As a shareholder and former CEO with historical knowledge of our company, I will remain available to the team to consult as needed, consistent with the framework set out in our U.S. agency resolutions.
What’s next for me? I will take a break first. I have not had a single day of real (phone off) break for the last 6 and half years.
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. I can’t see myself being a CEO driving a startup again. I am content being an one-shot (lucky) entrepreneur.
Should there be listeners, I may be open to being a coach/mentor to a small number of upcoming entrepreneurs, privately.
If for nothing else, I can at least tell them what not to do. 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! With that, I look forward to seeing the new leadership take the reins. Please join me in congratulating Richard on his well-deserved promotion. Onwards!
Meanwhile, Binance reportedly reached a separate settlement with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC).
- As part of this comprehensive settlement, Changpeng Zhao is expected to enter a guilty plea in connection with anti-money laundering charges, as confirmed by the Department of Justice.
In response to these unfolding events, Zhao himself officially announced his resignation from the CEO position.
Backstory
In a development stemming from earlier legal scrutiny this year, Binance and its founder, Changpeng Zhao (CZ), found themselves facing charges from the U.S. Securities and Exchange Commission (SEC) in June.
- The SEC accused them of operating an unregistered exchange and misleading investors by utilizing the Switzerland-based fund Sigma Chain, also owned by CZ, to artificially inflate trading volumes on Binance’s U.S. platform.
- In June, SEC Chair Gary Gensler emphasized that the charges encompassed a range of deceptive practices, conflicts of interest, inadequate disclosure, and deliberate attempts to circumvent legal obligations.
Following the SEC’s actions, the Commodity Futures Trading Commission (CFTC) filed charges against Binance, alleging that the company provided crypto derivatives, such as futures or options contracts, to U.S. citizens without proper registration as a futures commodity merchant
