After enduring a relentless year of legal turmoil, Binance, the world’s largest cryptocurrency exchange, reached a historic juncture with the resolution of its prolonged lawsuit.
As reported by ZyCrypto, this resolution carries a monumental $4 billion price tag, signalling a seismic shift for the platform. Alongside the weighty financial implications, Changpeng “CZ” Zhao, a prominent figure in the crypto world, has made a big decision: his resignation as Binance’s Chief Executive Officer.
CZ exits, Binance settles $4.3B DOJ case
The Wall Street Journal (WSJ) reported on Tuesday, 21st November 2023, that CZ intends to admit to violating U.S. anti-money-laundering regulations. This admission is seen as a potential strategy to enable the exchange to continue with its operations.
In tandem with Zhao’s admission, Binance, owned and founded by CZ, will also plead guilty. This joint plea resulted in a substantial $4.3 billion settlement and fine payment to regulatory entities.
Zhao is said to be residing in the United Arab Emirates. While a mutual legal assistance treaty exists between the US and the UAE for sharing investigation-related information, there is no established extradition treaty.
The resolution marks the end of a prolonged DOJ investigation that has spanned a year, probing into the exchange’s operations. While allowing Zhao to maintain ownership of the cryptocurrency exchange, the settlement stipulates preventing his engagement in any executive roles within the company.
Binance vs DOJ agreement details
The settlement would resolve allegations by the Commodities Future Trading Commission (CFTC) that Binance provided Americans access to unregistered derivatives and weak anti-money laundering controls.
However, it excludes a resolution with the Securities and Exchange Commission, which sued Binance over alleged investor-protection violations earlier this year. The company intends to contest those accusations regarding safeguarding investors through legal proceedings.
According to a report by WIRED on November 21, Richard Teng, Binance’s current regional markets leader, is positioned as the probable successor. Teng, formerly the CEO of Abu Dhabi Global Market, a financial regulatory body in the UAE, garners strong support within the Binance team.
Binance stands as the foremost cryptocurrency exchange globally, dominating nearly 40% of the market share and serving as a crucial pillar in the infrastructure of the crypto industry.