It's been a wild say of crypto news with Changpeng “CZ” Zhao announcing that he has stepped down as CEO of Binance. The news broke as part of a major $4 billion settlement between United States agencies and the cryptocurrency exchange he founded.
The announcement from CZ capped a years long investigations by the Department of Justice (DoJ) and others into anti-money laundering violations and sanctions violations. The comes on the heels of FTX's Sam being charged for his crypto related crimes.
Unlike Sam, CZ admitted that he made mistakes, and he must take responsibility and that's why he is stepping down. He followed these comments with saying that this is best move for the community, for Binance, and for himself. Binance said it would take responsibility for not having appropriate compliance controls.
As part of the settlement, CZ pleaded guilty to anti-money laundering and sanctions violations brought by the Department of Justice. Additionally, Binance settled charges with the DOJ and Commodities Futures Trading Commission; the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), which will give the Treasury Department access to Binance’s books and records under the terms of a five-year monitorship. The settlement also comes with a $3.4 billion penalty to FinCEN and $968 million to OFAC, as well as compliance requirements and monitoring for a period of five years!
Bitcoin (BTC) is down 2.46% at the time of writing this article. We will have to see the short and long term fallout from this news...
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