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Changpeng Zhao resigned officially and stepped down from his role as the Chief Executive Officer of Binance. Additionally, he has admitted culpability for breaching criminal anti-money laundering regulations. Consequently, the United States Department of Justice (DOJ) poised to make a formal announcement regarding a settlement at a press conference today. Marking the conclusion of an extensive investigation into the activities of the exchange.
Earlier reports from Bloomberg this week suggested that the DOJ was seeking a settlement of $4 billion from Binance. Moreover, the inclusion of criminal charges against Zhao would be a pivotal element in the proposed resolution plan. With Zhao’s resignation, the specific details of the settlement anticipated to be unveiled later today.
CEO Changpeng Zhao Resigns Amidst Anticipated Conclusion of US Criminal Investigation
Throughout a substantial portion of this year, Binance, the cryptocurrency exchange, has been under increased scrutiny from the United States. This heightened scrutiny reached its zenith with a criminal investigation aimed at the exchange and its Chief Executive Officer, Changpeng Zhao. Presently, there are indications that this investigative process may be drawing to a close. Coinciding with noteworthy changes within the exchange.
To be specific, as reported by the Wall Street Journal. Changpeng Zhao has formally resigned from his role as CEO of Binance. Noteworthy is the fact that Zhao’s resignation is a result of his admission of guilt concerning violations of anti-money laundering requirements. The imminent announcement by US Attorney General Merrick Garland today anticipated to mark the conclusion of Binance’s criminal investigation.
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Additionally, the report specifies that Zhao will still retain majority ownership of the cryptocurrency exchange. Conversely, the guilty plea will prohibit him from assuming an executive position within the company.
DOJ Seeks $4 Billion Settlement from Binance
Earlier this week, it reported that the Department of Justice (DOJ) was seeking a $4 billion settlement from Binance. Notably, alongside this financial settlement, the DOJ also sought criminal charges against the Chief Executive Officer. Who has now become a central figure in the unfolding developments.
The report specifies that the settlement expected to be negotiated among the Department of Justice, Binance, and the Commodities Futures Trading Commission (CFTC). Furthermore, it emphasized that the US Securities and Exchange Commission (SEC) not anticipated to participate in the settlement proceedings.
