Binance Faces Three Criminal Charges as CEO CZ Resigns and Pleads Guilty

Binance, the world’s leading cryptocurrency exchange, finds itself entangled in a legal storm as it faces three serious criminal charges. Adding to the shock, changpeng zhao

changpeng zhao founder and ceo at Binance Changpeng Zhao is the Founder and Chief Executive Officer at Binance.His contribution to the enhancement of Binance made the platform world’s largest cryptocurrency exchange since its inception in 2017. Zhao launched the blockchain network Binance Smart Chain which has made a remarkable contribution to the development of the decentralized finance ecosystem. Whereas in 2019, he launched Binance’s US affiliate, Binance.US.  
He is commonly known as CZ, a Chinese-Canadian Business Executive who has been ranked 113th richest in the globe as of 2022. In the past, he founded Fusion Systems, a trading system for brokers famous for some of the fastest high-frequency trading systems for brokers. Zhao has served as a member of the team that developed Blockchain.info and played the role of Chief Technology Officer of OKCoin, a secure cryptocurrency exchange platform for Bitcoin, Ethereum, Dogecoin, and other crypto assets. EntrepreneurInvestorChief Executive Officer (CZ), the CEO of the company, has resigned and pleaded guilty in a Seattle federal court in connection with the charges.

Woah… way too much to take in, right? Read on for more details.

Binance’s Legal Woes

In June, the Securities and Exchange Commission (SEC) pointed fingers at Binance, accusing them and Zhao of illegal US operations and investor fraud. The SEC tried freezing Binance’s assets, citing “violative conduct” and a disregard for US laws.

Binance sidestepped the freeze by blocking access to funds and more.

Now, on November 22, a Seattle court declared Binance and CZ guilty on three charges: running an unlicensed money-transmitting business, violating the International Emergency Economic Powers Act, and conspiracy.

Also Read: BNB Price Bleeds! Is This A Crucial Time To Sell Binance Tokens?

CZ Strikes a Deal

In a strategic move, CEO Changpeng Zhao admitted to breaking money laundering rules, agreeing to a $50 million fine. The deal, with the Justice Department, aims to keep the company going. Simultaneously, Zhao steps down per the settlement with the Treasury Department and the Commodity Futures Trading Commission.

Despite a hefty $4.3 billion fine commitment, Binance plans to keep going globally. However, US regulators will closely monitor the company.

Where is CZ now?

Reports indicate that Zhao currently resides in the United Arab Emirates (UAE). Despite the UAE having a mutual legal assistance treaty with the US, facilitating information exchange for criminal investigations, there is no formal extradition treaty. This absence makes it challenging to bring him to court in the US.

Read More: Will Binance Ex-CEO Changpeng Zhao Face Prison Time? Decoding The Possibilities

While Binance CEO Changpeng Zhao has not directly commented on the settlement details, he has previously expressed Binance’s commitment to full compliance with regulations across all jurisdictions.

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