Changpeng Zhao, now former CEO of Binance, admits to charges related to illicit transactions, money laundering, and violation of US sanctions: he will personally pay a $50 million fine.
- Changpeng Zhao, former CEO of Binance, has admitted guilt in response to charges brought by the United States government and is set to appear in court next February.
- Binance has agreed to pay $4.3 billion in fines and other costs as a result of a settlement with the U.S. Department of Justice.
- Zhao has resigned from his position as CEO of Binance and has committed to paying a personal fine of $50 million, in addition to a $175 million bail.
Charges against Binance
These admissions concern Binance’s involvement in unregulated money transfer operations, money laundering activities and US sanctions violations.
Authorities view Binance’s situation as an unprecedented corporate resolution. After careful investigation, the authorities stated that Binance facilitated illegal activities on its platform.
Details of the agreement
Changpeng Zhao has agreed to pay a personal bail of $175 million after admitting to criminal charges in the U.S.
According to a court document, Zhao has committed to a court appearance in Seattle on February 23 of next year for the sentencing hearing. Zhao is also paying $15 million held in a trust account of Davis Wright Tremaine.
According to the terms of the agreement, Zhao has agreed to pay a personal fine of $50 million and Binance will pay a $4.3 billion fine for violating laws on money transmission and U.S. sanctions.
Zhao might face a few months of prison time: the final sentence will be determined by a judge.
Leadership changes in Binance
Richard Teng has taken over as the new CEO of Binance, replacing Zhao. Teng joined Binance as CEO of Binance Singapore in 2021, and became head of regional markets by May of the following year.
Before joining Binance, Teng was the CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market. Teng also has extensive experience as a regulatory executive at Singapore’s SGX.
Following the news, Binance experienced a net outflow of $1 billion from its platform in the last 24 hours, and its native token, BNB, declined by 9.1%.
