Binance CEO Changpeng Zhao announced on Tuesday afternoon (21) that he is stepping down from his position and taking responsibility for mistakes made during his management. The decision marks a significant change in the brokerage’s leadership and sets the stage for a new chapter in the company’s history.
“Today I stepped down as CEO of Binance. Admittedly, it wasn’t easy to let go emotionally. But I know it’s right because I made mistakes and I have to take responsibility. This is better for our community, for Binance and for me.” — said CZ in a after on X.
The now former CEO of the world’s largest cryptocurrency exchange highlighted Binance’s evolution from a startup to a global leader in the cryptocurrency sector and expressed confidence in the company’s future, mentioning that “It’s time to let her walk and run.”
With a tone of confidence and optimism, he stated that the best days for Binance and the cryptocurrency industry are yet to come.
Today I stepped down as CEO of Binance. Admittedly, it wasn’t easy to let go emotionally. But I know it’s the right thing to do. I made mistakes and I have to take responsibility. This is what is best for our community, for Binance and for myself.
Binance is no longer a baby. It is…
— CZ 🔶 Binance (@cz_binance) November 21, 2023
New Binance CEO
In the same statement, it was announced that Richard Teng, former global head of regional markets at Binance, will take on the role of CEO.
With more than three decades of financial services and regulatory experience, including leadership roles at the Abu Dhabi Global Market Financial Services Regulatory Authority (ADGM) and the Singapore Exchange (SGX), Teng is considered a strategic choice to bring Binance into the to lead the next phase. of growth, with an emphasis on security, transparency, compliance and expansion.
CZ also shared his personal plans following his resignation, announcing his intention to take a break after six and a half years of continuous work.
He expressed interest in making passive investments in startups in the areas of blockchain, Web3, DeFi, AI and biotechnology, and considered the possibility of acting as a mentor for future entrepreneurs.
Importantly, the former CEO mentioned that in the resolutions with US agencies, there were no allegations of mismanagement of user funds or market manipulation by Binance, strengthening the security of user funds on the platform.
Upon his farewell, the former CEO invited the community to join him in congratulating Richard Teng on his promotion, signaling a promising future for Binance under its new leadership.
In a message at
In addition, Teng said he will work with regulators to maintain high standards around the world that promote innovation and work with partners to drive Web3’s growth and adoption.
It is an honor and with the deepest humility that I step into the role of the new CEO of Binance.
We operate the world’s largest cryptocurrency exchange by volume. The trust that our 150 million users and thousands of employees place in us is a responsibility that I take seriously and cherish…
—Richard Teng (@_RichardTeng) November 21, 2023
Binance and CEO plead guilty to federal crimes
Binance has pleaded guilty to several serious financial crimes in the US. The company admitted its involvement in money laundering, operated without a money transfer license and violated sanctions, agreeing to pay a fine of more than $4 billion in one of the largest corporate resolutions seeking criminal charges against a manager was involved.
Changpeng Zhao, founder and CEO of Binance, a Canadian citizen, also pleaded guilty to failing to maintain an effective anti-money laundering (AML) program, in violation of the Bank Secrecy Act (BSA).
According to a statement published by the US Department of Justice, Binance’s guilty plea is part of resolutions coordinated with the Financial Crimes Enforcement Network (FinCEN) and the US Treasury Department’s Office of Foreign Assets Control (OFAC). Commodity Futures Trading Commission (CFTC).
“Binance’s accelerated growth, which led to it becoming the largest cryptocurrency exchange in the world, was fueled in part by serious crimes, now resulting in one of the largest corporate fines in US history.”, said Attorney General Merrick B. Garland. He emphasized the importance of following the law, regardless of the technology used.
Janet L. Yellen, the US Treasury Secretary, emphasized that Binance’s “intentional” failures allowed money from terrorists, cybercriminals and child molesters to flow through the platform.
“Historic fines and monitoring to ensure compliance with US laws and regulations mark a milestone for the virtual currency industry”Yellen said.
In addition to admitting that Binance prioritizes growth and profits over compliance with US law, Binance has faced specific accusations of circumventing controls to prevent money laundering and allowing US users to transact with users in sanctioned jurisdictions.
Binance only started requiring know-your-customer information (KYC) in August 2021, but allowed users without KYC to continue trading until May 2022.
As part of the settlement, Binance agreed to pay a criminal fine of $4,316,126,163. Binance also agreed to maintain an independent compliance monitor for three years and improve its AML and sanctions programs.
The case represents a turning point for the cryptocurrency industry and highlights the importance of strict compliance with financial laws and regulations regardless of technological innovation.
Binance will make a ‘complete exit’ from the US
As part of the agreement with FinCEN, Binance will make a “full exit” from the US and appoint a five-year monitor to oversee the exchange’s sanctions program.
The US Treasury Department will have access to Binance’s data and systems during this period.
Treasury Secretary Janet Yellen said Tuesday’s action was the largest settlement in the department’s history.
“I want to make sure people really understand how unprecedented this monitoring is.”he said during a press conference. “Not only are we pursuing egregious behavior, but we are also pulling Binance completely out of the US.”
The DoJ clarified that the Binance.USthe US division of Binance, is a registered company and therefore will not be affected.
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.
