Changpeng Zhao resigned on Tuesday (21) as CEO of Binance after the US fined his company 4.3 billion dollars (R$21 billion). As part of the trial, Zhao also paid a US$175 million (R855 million) bail to avoid arrest.
Moving forward, Zhao will also have to meet other requirements to avoid going to jail. These include collecting your DNA and address, banning the use of prescription drugs, and committing other crimes. The executive branch will also have to appear in US courts in February 2024.
“I understand that I may be released pending further proceedings in this case under the market conditions below”points to the document signed by Changpeng Zhao.
The same document then points out that Zhao is said to be aware that the US could issue an arrest warrant against him if he failed to comply with any of the points mentioned.
Changpeng Zhao could spend 18 months in prison
While the above document does not mention how long Changpeng Zhao could be in prison, sources from US newspaper The New York Times claim that the director could face a maximum of 18 months in prison.
Last Tuesday (21), Zhao resigned as CEO of his company. His departure would also be part of the agreement with the American government. His position was taken over by Richard Teng, who was considered for the position months ago.
Going further, Binance also agreed to allow the US to monitor its activities for the next five years. One of the key allegations in the lawsuit pointed to weak anti-money laundering policies, which allowed several criminals to use the platform, including those sanctioned by the US.
Despite the Justice Department lawsuit, Binance continues to have the largest cryptocurrency trading volume in the world. According to data from CoinMarketCap, the broker processed $14 billion in spot transactions in the last 24 hours.
In the derivatives market, this figure is $61 billion. The largest competitors achieve 1/3 of this volume on the futures market and 1/4 on the spot market.
Binance’s cryptocurrency is suffering, but remains huge
At $233, Binance Coin (BNB) is the biggest indicator of Binance’s health and the trust of its customers. Despite the 15% drop in the last 24 hours, the coin remains above the values of the last three months.
One of the reasons why BNB resisted the pressure was Binance’s continued work even after the US Department of Justice lawsuit. In his exit note, Zhao emphasized that the US has not charged the brokerage for misappropriating its clients’ funds and market manipulation.
Richard Teng, Binance’s new CEO, also made this point, stating that the broker’s financial health is strong. Using a spreadsheet put together by his competitor, a Coinbase executive, Teng was enthusiastic about Binance’s activities.
“The foundations of our company are VERY strong.”
“Binance continues to operate the largest cryptocurrency exchange in the world by volume, our capital structure is debt-free, fees are modest, and despite the low fees we charge our users, we have robust revenues and profits.”continued the new CEO of Binance.
The foundations of our company are VERY strong.
Binance continues to operate the largest crypto exchange in the world by volume, our capital structure is debt-free, fees are modest, and despite the low fees we charge our users, we have robust revenues and profits. https://t.co/PHq2YS0CP5
—Richard Teng (@_RichardTeng) November 22, 2023
Finally, Teng has the difficult task of taking the place of the founder of Binance, who was already very famous and influential. Therefore, the coming months could be decisive for Binance.
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.