Changpeng Zhao (better known as C.Z.), founder and CEO of Binancethe oldest cryptocurrency exchange world, resigned as CEO after pleading guilty to money laundering charges in the United States.
The businessman resigned from his position as CEO of Binance after pleading guilty to violating US bank secrecy and anti-money laundering laws. Zhao made this decision to preserve the company’s operational capacity and resolve the investigations against him by the US justice system.
Binance, as an entity, also pleaded guilty to charges related to money laundering and conspiracy to conduct unlicensed investment activities. The company faces a total penalty of $4.3 billion. The investigation revealed that Binance would have allowed individuals from sanctioned countries such as Russia or Iran to do business with users in the United States.
Changpeng Zhao will remain at Binance
Richard Teng, who was previously Global Head of Regional Markets at Binance, will take over as CEO. However, Binance has stated that CZ will remain the majority shareholder in the company and will also act as an available resource for consultation on historical areas of the business.
In a tweet, CZ said: “Today I stepped down as CEO of Binance. It’s true that it wasn’t easy to let go emotionally. But I know it’s right. I made mistakes and I must take responsibility. This is what is best for our community, for Binance and for me.”
Zhao’s resignation comes at a crucial time for the cryptocurrency industry. Following fraud cases and scandals such as that of FTX, led by Sam Bankman-Fried, the sector is experiencing a significant change in its narrative, pushing for stricter regulation and seeking greater legitimacy in global markets such as Europe, where regulations are emerging. MiCA.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.