Coinmooner Team Sheds Light on Binance and Zhao's Downfall: Unregistered Exchange, Deception, and Swiss Fund Shenanigans Unveiled
Former Binance CEO Changpeng "CZ" Zhao has announced his resignation from the helm of the cryptocurrency exchange following a $4 billion deal with the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC). This significant development is part of a guilty plea, including money laundering charges brought against Zhao by the DOJ, as reported by The WallStreet Journal.
Binance cryptocurrency exchange has disclosed that Richard Teng, the head of regional markets, will replace his predecessor Changpeng Zhao (CZ) as the CEO. The founder of one of the largest exchanges in the world has admitted guilt in allegations of money laundering. The accusations against Binance and Zhao involve operating an unregistered exchange, misleading investors, and using a Swiss-based fund to inflate trading volumes.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Insiders well-acquainted with the negotiations assert that Zhao's resignation marks a crucial turning point in the multibillion-dollar deal—an impactful agreement that notably sidesteps the Securities and Exchange Commission (SEC). Within the framework of this agreement, Zhao openly acknowledges his culpability in the money laundering charges. This admission is anticipated to be officially voiced in a federal court in Seattle.
DOJ's charges against Binance surfaced five months after the SEC filed 13 charges against the exchange and Zhao, accusing them of providing cryptocurrency-related services. According to the SEC, Binance.US allegedly misled regulators about its independence.
Gary Gensler, the chairman of the SEC, has accused Zhao and Binance of participating in a web of deception, conflicts of interest, lack of disclosure, and deliberate evasion of the law.
Additionally, according to Zhao's personal Twitter account, he, as a shareholder and former CEO with historical experience in the company, will remain available to the team for consultations as needed, in accordance with the framework established in their agreements with U.S. agencies.
Binance is the world's largest cryptocurrency exchange by volume, trusted by 150 million users and thousands of employees worldwide. Briefly outlining his plan for the near future in his new role, he underscored the importance of maintaining high standards and furthering the company's development.
My focus will be on:
Reassuring users that they can remain confident in the financial strength, security and safety of the company.
Collaborating with regulators to uphold high standards globally that foster innovation while providing important consumer protections
Working with partners to drive growth and adoption of Web3
We are here to stay. Please lend me your support. Excited for the days ahead!
The Coinmooner team has also gathered useful information for its readers about the person who now holds the position of CEO at the world's largest exchange. Before joining the Binance team, Richard Teng served as the CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM), Chief Regulatory Officer of the Singapore Exchange (SGX), and Director of Corporate Finance at the Monetary Authority of Singapore. With Richard's experience, Changpeng is confident that Binance remains in reliable hands.
