United States: Mr. Changpeng Zhao, the founder and CEO of Binance, the world’s largest cryptocurrency exchange, has resigned from his role after pleading guilty to money laundering violations.
According to the US Department of Justice (DoJ), Binance must pay $4.3 billion in penalties and forfeitures. The announcement is the most recent setback for the cryptocurrency industry.
Cryptocurrency has also come under scrutiny for being used as a tool by illicit groups to circumvent global financial safeguards.
“I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself”, Mr. Zhao wrote on X, formerly known as Twitter.
US Attorney General, Mr. Merrick Garland, stated that, “Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed. Now it is paying one of the largest corporate penalties in US history.”
Mr. Sam Bankman-Fried, founder of the second-largest cryptocurrency exchange in the world, FTX, was recently found convicted of fraud for stealing over $10 billion from investors and customers.
“In just the past month, the Justice Department has successfully prosecuted the CEOs of two of the world’s largest cryptocurrency exchanges in two separate criminal cases. The message here should be clear: Using new technology to break the law does not make you a disruptor. It makes you a criminal,” Mr. Garland added.
Mr. Zhao’s plea agreement also prevents him from having any contact with the limited liability firm Binance, which is based in the Cayman Islands. The founder has previously faced charges of diverting customer funds.
TRENDING | Musk’s X files lawsuit against Media Matters for defamation
