Binance Founder Changpeng Zhao to Plead Guilty and Resign in Agreement with Department of Justice

Binance Founder Changpeng Zhao to Plead Guilty and Resign in Agreement with Department of Justice

Changpeng Zhao to Step Down from Binance in $4.3 Billion Settlement

If reports from Forbes and the Wall Street Journal are accurate, Binance CEO Changpeng Zhao will have to resign from his position at the world’s largest exchange as part of a $4.3 Billion settlement.

Zhao’s Departure

Zhao is expected to appear in federal court in Seattle to plead guilty to violating United States anti-money laundering laws. Regardless of this, he may still retain majority ownership in Binance. Nonetheless, he won’t be able to hold an executive position in the company.

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Interestingly, Zhao posted a tweet mentioning the difficulty of deciding when to relinquish control of a company you founded.

Details of the Settlement

The latest information comes amid the anticipation of a $4.3 Billion settlement with Binance by the Securities and Exchange Commission. This sum is expected to resolve states of fraud, money laundering, and terror finance. According to Bloomberg, the United States Attorney General will publicly announce the settlement with Binance. On a positive note, Coinbase’s director believes Binance has the capacity to pay the fine without selling any cryptocurrency assets.

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Hot Take: Zhao’s Probable Departure from Binance

If the reports are true, Zhao’s departure from Binance would mark a whole lot of change in the leadership of the world’s largest cryptocurrency exchange, with probable implications for the industry as a whole. Still, the company’s capacity to pay the settlement without selling assets has been seen as a positive indicator of its financial health.

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