Binance CEO Changpeng Zhao is stepping down as CEO of Binance, the largest cryptocurrency exchange in the market. This is part of a $4 billion settlement with the U.S. Department of Justice (DOJ) linked to years of investigations linked to the Binance trading platform. The information was just released by Forbes.
Binance CEO CZ Resigns in $4 Billion Settlement Deal with DOJ
Changpeng Zhao, the CEO of Binance and one of the most influential individuals in the crypto industry is stepping down as the head of Binance. The move comes amid an investigation carried out by the Department of Justice and the Commodity Futures Trading Commission. It is worth taking into consideration that the U.S. Securities and Exchange Commission (SEC) is not participating.
As per the report, Zhao is going to be stepping down and pleading guilty to violating criminal U.S: anti-money laundering regulations. Binance has been in the industry for multiple years after being launched back in 2017 during the bull market experienced by Bitcoin (BTC) and other cryptocurrencies.
It is important to highlight that Binance was also charged earlier this year by the U.S. SEC with operating an unregistered exchange on U.S. soil and offering services such as derivatives to U.S. individuals. In normal circumstances, those products can only be offered by regulated and registered platforms in the United States.
At the time of writing this article, Changpeng Zhao didn’t write anything on Twitter. The community is now waiting for his comments or any official information confirming Forbes’ report.
Coingecko is also showing strong selling pressure for Binance Coin (BNB), the digital currency of the Binance exchange and environment. In the last 24 hours, Binance Coin fell by 6.8% and in the last hour alone it lost 6.2% of its value. It is worth waiting and seeing how Binance Coin will behave in the short term and in the next few days.
Crypto-derisking could be a positive thing for the crypto market. Some key players such as Binance, FTX or Tether played a central role in this industry. While FTX has already fallen, Binance and Tether are still of interest to regulators around the world and investigations by different regulatory agencies. This is a developing story and multiple things can happen in the next few hours.