‘Binance is no longer a baby,’ Binance CEO Changpeng Zhao steps down (2024)

This comes right after Zhao pleaded guilty to violating US anti-money laundering laws, prosecutors said, as reported by Reuters.

In a post on X, Zhao wrote, “Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do."

Zhao noted, “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself. Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has."

Zhao informed that Binance's Head of Regional Markets Richard Teng will replace him as the CEO of Binance.

Also Read: Binance's Changpeng Zhao pleads guilty, steps down to settle US illicit finance probe

“I’m pleased to announce that Richard Teng, our now former Global Head of Regional Markets, has been named the new CEO of Binance today. Richard is a highly qualified leader and, with over three decades of financial services and regulatory experience, he will navigate the company through its next period of growth. He will ensure Binance delivers on our next phase of security, transparency, compliance, and growth."

Also Read: Binance Founder and CEO pleads guilty, steps down from company. Who is Changpeng Zhao?

“Prior to joining Binance, Richard was CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM); Chief Regulatory Officer of the Singapore Exchange (SGX); and Director of Corporate Finance in the Monetary Authority of Singapore. With Richard and the entire team, I’m confident that the best days for Binance and the crypto industry lay ahead," he wrote on X.

Also Read: US SEC sues Binance, founder Zhao alleging securities law violations

“As a shareholder and former CEO with historical knowledge of our company, I will remain available to the team to consult as needed, consistent with the framework set out in our US agency resolutions," Zhao added.

Zhao said that he would be taking a break and informed that he had not had a real phone break for the last 6 and half years.

Also Read: What Is Happening With Binance?

“What’s next for me? I will take a break first. I have not had a single day of real (phone off) break for the last 6 and half years. After that, my current thinking is I will probably do some passive investing, being a minority token/shareholder in startups in areas of blockchain/Web3/DeFi, AI and biotech. I am happy that I will finally have more time to spend looking at DeFi," Zhao said in a statement.

Also Read: Binance lays off over 1,000 employees, including 36 in India- Report

"I can’t see myself being a CEO driving a startup again. I am content being a one-shot (lucky) entrepreneur. Should there be listeners, I may be open to being a coach/mentor to a small number of upcoming entrepreneurs, privately. If for nothing else, I can at least tell them what not to do. On that note, I am proud to point out that in our resolutions with the US agencies they:

- do not allege that Binance misappropriated any user funds, and

- do not allege that Binance engaged in any market manipulation.

Funds are SAFU! With that, I look forward to seeing the new leadership take the reins. Please join me in congratulating Richard on his well-deserved promotion.

Onwards! CZ," he said in his post.

As reported by Reuters citing authorities, Binance violated US anti-money laundering and sanctions laws by failing to report more than 100,000 suspicious transactions with organizations designated as terrorist groups by the US, including Hamas, al Qaeda, and the Islamic State of Iraq and Syria.

Also Read: Militants Behind Israel Attack Raised Millions in Crypto

Prosecutors hailed the agreement, which would see Zhao personally pay $50 million, as one of the highest corporate penalties in US history. It is yet another setback for the crypto business, which has been plagued by probes, and follows the recent fraud conviction of FTX creator Sam Bankman-Fried.

"The exchange also never reported transactions with websites devoted to selling child sexual abuse materials and was one of the largest recipients of ransomware proceeds", they said.

Also Read: What is Binance’s connection with terrorist groups like Hamas, Al Qaeda, ISIS, Palestinian Islamic Jihad? Explained

“Binance made it easy for criminals to move their stolen funds and illicit proceeds on its exchanges," US Attorney General Merrick Garland said on Tuesday. “Binance also did more than just fail to comply with federal law. It pretended to comply."

Also Read: UN says crypto use in terror financing likely soaring

According to the New York Times, the Justice Department, which negotiated the settlement with the Commodity Futures Trading Commission (CFTC) and the Treasury Department, is seeking an 18-month jail sentence for Zhao, the maximum allowed under federal guidelines.

Binance will pay $1.81 billion within 15 months, and a further $2.51 billion forfeiture as part of the deal, prosecutors said.

Zhao, a billionaire, was born in China and migrated to Canada when he was 12 years old. On Tuesday afternoon, he pled guilty in a Seattle court.

According to Forbes, Zhao's net worth is $10.2 billion.

Also Read: Binance, CEO Changpeng Zhao to seek dismissal of CFTC complaint of violating Commodity Exchange Act

According to Reuters, Binance has been under the Justice Department's inspection since at least 2018, which is only one of a slew of legal issues it is dealing with in the United States.

In December 2020, federal prosecutors requested that the corporation submit internal data about its anti-money laundering operations, as well as contacts with Zhao.

The CFTC charged Binance with civil fraud in March, stating that the company failed to develop an adequate anti-money laundering program to detect and prevent terrorist financing.

(With inputs from Reuters)

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Published: 22 Nov 2023, 07:33 AM IST