- Binance CEO Changpeng Zhao plans to step down amid DOJ settlement.
- Zhao to plead guilty to charges, avoiding jail but leaving executive role.
- Binance’s $4.3 billion DOJ settlement excludes SEC, details still uncertain.
A Wall Street Journal article states that Changpeng Zhao, the CEO of Binance, has chosen to step down in anticipation of the Department of Justice’s declaration that it has settled with the cryptocurrency exchange for the amount of $4.3 billion.
According to the Wall Street Journal, CZ is prepared to plead guilty to numerous charges filed by the Department of Justice. The report indicates that he will appear in a federal court in Seattle on November 21 to enter his plea. Furthermore, the WSJ notes that he is anticipated to plead guilty to a criminal charge related to breaching Anti-Money Laundering laws.
Under the terms of the plea deal, CZ will retain his majority ownership in Binance. Additionally, it is unlikely that he will face incarceration; however, he will be prohibited from holding an executive position at the company.
Settlement Negotiations in Progress Now
Additionally, the U.S. Securities and Exchange Commission, which has charged Binance with operating as a securities and clearing platform without the proper registration, will not participate in the suggested settlement agreement. There is a lot of speculation regarding the details of the potential settlement. It remains uncertain if Binance will settle for the full $4 billion demanded by the Department of Justice or if a different sum will be negotiated.
Since 2018, the Department of Justice (DOJ) has reportedly been investigating the exchange for potential breaches of Know Your Customer (KYC) and Anti-Money Laundering (AML) rules related to the use of the platform by individuals under sanctions.
