WEB3
by BSCN
November 21, 2023
The charges against Binance and Zhao involve operating an unregistered exchange, misleading investors, and utilizing a Switzerland-based fund to inflate trading volume.
In a shocking turn of events, Binance CEO Changpeng "CZ" Zhao announced his resignation from the cryptocurrency exchange following a $4 billion settlement with the Department of Justice (DOJ) and the Commodities Futures Trading Commission (CFTC). This significant development is part of a plea deal that includes anti-money laundering charges brought by the DOJ against Zhao, according to a report from The WallStreet Journal.
Sources close to the discussions reveal that Zhao's resignation is a key component of the multi-billion dollar settlement, a monumental agreement that excludes the Securities and Exchange Commission (SEC). As part of the settlement, Zhao will plead guilty to anti-money laundering charges, and the plea is scheduled to take place in federal court in Seattle on Tuesday afternoon.
The DOJ charges against Binance come five months after the SEC filed 13 charges against the exchange and Zhao, accusing them of providing crypto-related services to Binance.US while allegedly lying to regulators about its independence.
According to the SEC, Binance misled investors by utilizing Sigma Chain, a Switzerland-based fund owned by Zhao, to inflate trading volume on Binance's U.S. platform. SEC Chair Gary Gensler accused Zhao and Binance of engaging in a web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.
Amidst the leadership transition, Richard Teng, Binance's head of regional markets outside the U.S., is reportedly under consideration to assume the CEO role.
This seismic event follows the SEC's recent charges against Kraken, the third-largest crypto exchange, for allegedly operating as an unregistered securities exchange, broker, dealer, and clearing agency.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
Latest News
2h : 11m ago
Top 5 BNB Chain Memecoins for 2025: Watchlist
3h : 26m ago
BNB Chain’s 2025 Roadmap: Key Highlights
6h : 41m ago
Pi Network Announces Date For Open Network Launch
7h : 56m ago
Donald Trump to Nominate a16z Crypto Executive Brian Quintenz as CFTC Chair
February 11, 2025
Core DAO Sees Massive Growth in 2024: Report
February 11, 2025
What is Pump.fun and How Does it Work?
February 11, 2025
Injective Launches TradFi Stock Index, Bringing Traditional Equities On-Chain
February 11, 2025
Grayscale Files for Cardano ($ADA) Spot ETF with NYSE Arca