Binance founder Zhao Changpeng agrees to resign, pleads guilty, and Binance is fined 4.3 billion USD.

WSJ reported that Binance founder Changpeng Zhao has agreed to step down, and the cryptocurrency exchange Binance will admit wrongdoing and agree to pay a $4.3 billion fine. According to Bloomberg, as part of a comprehensive agreement reached with the Department of Justice to maintain the company's normal operations, Binance CEO Changpeng Zhao CZ admitted to money laundering violations in the U.S. on Tuesday and agreed to pay a $50 million fine.

Binance founder Changpeng Zhao CZ's resignation statement: Richard Teng will be appointed as the new CEO

Changpeng Zhao Pleads Guilty in Plea Deal, Binance Fined $4.3 Billion

WSJ reported that according to sources familiar with the matter, Changpeng Zhao is scheduled to appear in a Seattle federal court on Tuesday afternoon and enter a plea. Sources said that Zhao, who owns Binance, will also plead guilty to criminal charges and agree to Binance paying a total of $4.3 billion, including $3.4 billion to the Financial Crimes Enforcement Network (FinCEN) and $968 million to the Office of Foreign Assets Control, which includes the amount to settle civil charges brought by the CFTC and the Treasury Department.

This settlement will conclude a long-running investigation into Binance.

Binance Faces Three Charges, to Pay $1.81 Billion Upfront, $2.51 Billion to be Confiscated

Binance faces three charges, including:

• Operating an unregistered money services business
• Conspiracy: Intentionally violating the operation of an unregistered money services business
• Violation of the International Emergency Economic Powers Act: Binance unlawfully provided services directly or indirectly from the U.S. or enabling U.S. persons to provide services to Iran

Prosecutors stated that Binance must pay $1.81 billion within 15 months. Prosecutors said that Binance agreed to forfeit $2.51 billion in assets.

Binance Must Completely Exit the U.S., Subject to Five Years of Supervision

As part of the settlement with FinCEN, one of the conditions is that Binance will completely exit the U.S. and appoint a supervisor for five years to oversee the exchange's compliance program. During this period, the U.S. Treasury Department will have access to Binance's records and systems.

Changpeng Zhao to Pay $50 Million Fine for Money Laundering

The Department of Justice accused Binance, along with senior executives including Changpeng Zhao, of taking steps to conceal Binance's evasion of U.S. law.

The indictment alleges that from around August 2017 to October 2022, Binance and Changpeng Zhao engaged in a "deliberate and sophisticated scheme" to profit from the U.S. market without implementing the controls required by law.

CZ Changpeng Zhao admitted to money laundering in the U.S. on Tuesday and agreed to pay a personal fine of $50 million.

Changpeng Zhao's Sentencing to be Delayed by Six Months

Changpeng Zhao faces up to 10 years in prison and a fine of up to $500,000, in addition to any profits he made from the alleged scheme.

His lawyer stated in court on Tuesday that his sentencing will be delayed by six months. According to Judge Brian Tsuchida at the plea hearing, Changpeng Zhao's agreement includes waiving his right to appeal, provided his sentence does not exceed 18 months.

The U.S. crackdown on Binance and the crypto industry: Violate the rules and pay the price, a warning from the United States!

Changpeng Zhao Retains Majority Ownership but Must Resign from Positions

This settlement allows Changpeng Zhao to retain his majority ownership in Binance but he will not be able to hold executive positions in the company, and he will face sentencing later.

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