Cryptocurrency Giant Binance Faces Historic more then $4 Billion Penalty, CZ Resigns

The CZ CEO of Binance, which is the world’s largest cryptocurrency exchange, will step down. This decision comes after the company admitted on Tuesday to breaking the law, including the Bank Secrecy Act, which is a rule against money laundering.

Binance has to pay more than $4.3 billion to settle these charges, and this is the biggest penalty the Treasury Department has ever imposed. The U.S. Treasury Secretary, Janet Yellen, stated that Binance consistently and seriously violated U.S. laws against money laundering and sanctions.

Changpeng Zhao, the CEO, also admitted to not having an effective system to prevent money laundering and will resign from his role. He agreed to a $50 million fine as part of the settlement.

In a post, CZ confirmed he’s leaving as CEO, acknowledged his mistakes, and said Richard Teng, Binance’s head of regional markets, will take over as CEO. Zhao will still be a shareholder and can advise the company. He emphasized that there were no allegations about misusing customer funds or manipulating the market. Read more…