Binance CEO’s Resignation Marks The End Of An Era In Crypto History

• Binance settles over $4 billion with U.S. for regulatory breaches.
• CEO Changpeng Zhao resigns, admits to contravening Bank Secrecy Act.
• Faced SEC lawsuit, DOJ and CFTC scrutiny for anti-money laundering failures.

Binance, the largest global exchange for cryptocurrencies, has agreed to a settlement exceeding $4 billion with the U.S. authorities, as verified by FOX Business. According to reports, Changpeng Zhao, the CEO of Binance, is set to admit guilt in a federal court in Seattle on Tuesday for breaches of U.S. regulations. This plea is part of an agreement concluding an extensive criminal probe that the Wall Street Journal initially disclosed.

Binance is confronted with three criminal accusations, including breaches of U.S. anti-money laundering legislation, a conspiracy charge, and infringing the International Emergency Economic Powers Act, as indicated by court documents.

“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed. Now it is paying one of the largest corporate penalties in US history.”

Attorney General Merrick Garland

Zhao, who established Binance in 2017 and led it to a leading role in the cryptocurrency sector, has resigned from his position at the company and admitted to his role in leading a financial institution to contravene the Bank Secrecy Act. He has consented to a penalty of $50 million, which will be deducted from the amounts due to the Commodity Futures Trading Commission (CFTC), as stated by the prosecutors.

Binance has consented to settle a criminal fine of $1.81 billion, to be paid within 15 months following the sentencing. Additionally, the company has agreed to a forfeiture order amounting to $2.51 billion, as per the prosecutors. Samuel Lim, the former chief compliance officer of the firm, will also face charges in relation to this settlement, as reported by Reuters.

Attorney General Merrick Garland and Treasury Secretary Janet Yellen are expected to hold a press conference at the Justice Department at 3 p.m. ET, where they will announce actions related to cryptocurrency enforcement.

In June, the SEC sued Binance and its founder for allegedly creating Binance.US to bypass U.S. securities laws. Concurrently, Binance.US laid off about 50 employees. The DOJ and CFTC have also scrutinized Binance for inadequate anti-money laundering measures and potential illegal activities. Key executives have left Binance recently, and the cryptocurrency industry, including Binance, faces increased regulatory scrutiny following the collapse of FTX.