Changpeng Zhao Steps Down as Binance CEO Amid Legal Troubles

2023-11-22 Patryk Chodyniecki

I’ve got some hot news from the world of cryptocurrencies about Binance for you. Changpeng Zhao, the founder and until now the CEO of Binance, one of the world’s largest cryptocurrency exchanges, has just announced his departure from the role. Moreover, he and his company are facing serious legal charges.

What Happened with Binance?

Operating in the crypto market since 2017, Exchnge is currently going through tough times. After prolonged negotiations with U.S. authorities, the company decided to settle with the Department of Justice. It turned out that Binance breached banking secrecy by not implementing adequate measures to combat money laundering and the financing of terrorism. The result? They must pay a record fine of $4.3 billion!

Changpeng Zhao – The End of Leadership

Zhao, the face and brain behind Binance, decided to step down from his position as CEO. He admitted to committing a crime related to the violation of banking secrecy. Now, he must face the consequences of his actions, including separate charges and the possibility of receiving a prison sentence. His bail is set at a staggering $175 million, and he is scheduled to appear in court in Seattle in February 2024. If Zhao fails to meet the conditions of the settlement, he faces up to 10 years in prison and an additional fine of $250,000.

What’s Next for Binance?

Despite the challenges, Binance is trying to rebuild its reputation. They assure cooperation with the U.S. government and declare their intention to improve their compliance systems. The exchange’s authorities believe that the company will emerge from this crisis stronger, with a clear vision for the future.

However, the current situation of Binance is not the best. Data from DeFiLlama indicate that nearly $943 million was withdrawn from the platform in the last 24 hours. Additionally, the value of their BNB token fell by 9.7%, reaching $235.48. Will Binance maintain its position in the market? That remains to be seen, but it looks like difficult times are ahead.

AboutPatryk Chodyniecki