CZ Steps Down as Binance CEO After US Settlement
Changpeng Zhao, more popularly known as CZ, stepped down as Binance CEO as part of the controversial $4 billion settlement with the United States government and the company he helped found.
The 46-year-old businessman, investor, and software engineer took to Twitter or X to announce his resignation from Binance, one of the world’s most popular cryptocurrency exchanges.
CZ’s announcement came out after a year-long investigation by the US Department of Justice and others into anti-money laundering violations and sanctions violations.
On “X,” the CEO of Binance admitted his mistakes and took full responsibility, and according to him, his decision is the best for the Binance community and himself.
The Chinese-born Canadian crypto exchange founder Changpeng Zhao (CZ) noted that his company is no longer a baby, and it is time for him to let it walk and run. He knew that Binance would continue to grow and excel with its deep bench.
Although CZ will step down as CEO of Binance, he will remain one of the company’s majority shareholders. He will continue to provide resources for “consultation on historical areas of the business.”
CZ also announced that he will take a break first, probably do some passive investing, and finally have more time to spend looking at DeFi. He also clarified that Binance funds are safe.
The Binance outgoing CEO was also proud to point out that in their resolution with the US agencies, the US does not allege that Binance misappropriated any user funds and does not allege that Binance engaged in any market manipulation.
Before the official announcement of CZ’s resignation from Binance through X, Zhao appeared in a federal court in Seattle on Tuesday afternoon and pleaded guilty to anti-money laundering and sanctions violations brought by the Department of Justice.
Forbes reported that Binance settled charges with the DOJ and Commodities Futures Trading Commission, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), and the Office of Foreign Assets Control (OFAC), which will give the Treasury Department access to Binance’s books and records under the terms of the five-year monitorship.
The US Secretary General, Merrick Garland, said that because of the crimes committed, Binance became the largest cryptocurrency exchange in the world that paid one of the most considerable penalties in US history, worth around $4 billion.
Coinbase’s Brian Armstrong Hails US Treasury’s Efforts
Brian Armstrong, the CEO and co-founder of Coinbase, one of Binance’s competitors, hailed the announcement as “an opportunity to start a new chapter for the industry” in a post on X.
The Coinbase CEO, who also faced regulatory scrutiny from the US SEC, said he hoped the action against Binance would catalyze regulatory clarity.
Introducing Richard Teng as New Binance CEO
CZ announced on X the upcoming CEO of Binance, the former Global Head for Regional Markets, Richard Teng, has been named as the person who will take charge of the company.
According to CZ, Richard Teng is a highly qualified leader with over three decades of financial services and regulatory experience, and he will navigate the company through its next period of growth.
The outgoing Binance CEO reiterated that Richard Teng will ensure Binance will deliver the next phase of security, transparency, compliance, and growth.
Before joining Binance, Richard Teng was 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.
Here’s the Complete Announcement of CZ on X
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.
— CZ 🔶 Binance (@cz_binance) November 21, 2023
Binance is no longer a baby. It is…
Note: CZ Steps Down as Binance CEO first appeared on PhilNews.xyz
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