Changpeng Zhao, founder of Binance, is said to be willing to resign as CEO of his company and plead guilty to money laundering charges so that his exchange can continue to function. The information comes from The Wall Street Journal.
Also on Monday (20), Bloomberg reported that the Department of Justice (DoJ) would propose a settlement worth over $4 billion to end a long investigation against Binance. Another point made is that Zhao could still be prosecuted, which appears to have happened.
Although the DoJ has not yet presented the official note, the WSJ revealed that the exact amount of the agreement is $4.3 billion, one of the largest in US history. Changpeng Zhao used to respond to this kind of criticism by posting “number 4” and has been silent since last Sunday.
Bitcoin wobbles, but withstands the news that was already expected
Bitcoin was trading at $36,700 at the time of writing, fell, rose and then fell again in a short period of Tuesday afternoon (11), amid rumors of the US Department of Justice statement on Binance.
In any case, the news did not surprise investors. As recently as February this year, Binance had already admitted to “acting outside the law” and said it was willing to pay off its debts to the US.
“It’s a huge burden”Binance’s chief strategy officer said in February. “As a result, there were some gaps in our compliance system over the first two years.”
Therefore, the unexpected is the possible resignation of Changpeng Zhao as CEO of his company. In any case, Binance should continue to operate normally under different management.
All the Binance Coin (BNB) is down 9.8% in the last 2 hours, trading at US$238 and erasing Monday’s high (20).
Who could be the next CEO of Binance?
Among the most talked about names are Yi He, co-founder of Binance, and Richard Teng, currently responsible for the Asia, Europe and Middle East & North Africa regions.
“Teng has emerged as the favorite to take over as CEO if Zhao steps down”Bloomberg wrote in June after Binance was sued by the SEC.
On the same date, an anonymous source told CoinDesk “Both senior leadership and regulators have discussed behind closed doors that Richard Teng is the only leader who could take CZ’s place.”
Until the close of this report, no Binance executives had commented on Zhao’s departure as CEO and who would be next to take his position at the brokerage.
Finally, Binance’s case is not unique in the market. As recently as 2021, Arthur Hayes resigned as CEO of his broker, BitMex. The allegations are said to be similar to those faced by Binance, mainly due to the lack of compliance. In any case, the director still has great influence and respect in the market.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.