BREAKING: CZ to step down as CEO of Binance

Changpeng “CZ” Zhao, the founder of Binance, is stepping down from his CEO position as part of a significant $4 billion agreement with the Department of Justice (DOJ) and the Commodities Futures Trading Commission (CFTC). This settlement does not involve the Securities and Exchange Commission (SEC).

In this settlement, Zhao will admit guilt to charges of anti-money laundering brought by the DOJ. His guilty plea is set to be entered in a Seattle federal court on Tuesday afternoon, as reported by the Wall Street Journal.

At the time of this report, there has been no comment from Binance, the DOJ, CFTC, or SEC.

Previously, in June, the SEC accused Binance and Zhao of running an unregistered exchange and misleading investors. This was done through Sigma Chain, a Switzerland-based fund also owned by Zhao, used to artificially increase trading volume on Binance’s U.S. platform. SEC chair Gary Gensler described these actions as a complex network of deception and evasion of the law.

The SEC’s allegations came after the CFTC accused Binance of offering cryptocurrency derivatives, like futures or options, to U.S. citizens without the necessary registration.

Bloomberg recently reported that Binance is close to finalizing a $4 billion settlement with the Justice Department, ending an investigation that started in 2018. Reuters added that in late 2020, federal prosecutors requested Binance to submit files and communications concerning its U.S. customers.

Last September, Binance announced the creation of a Global Advisory Board, led by Max Baucus, a former U.S. Senator and Ambassador to China. The board includes David Plouffe, former campaign manager for President Barack Obama, and Bruno Bézard, the former head of the French Treasury.