Binance CEO to step down in $4bn settlement over anti-money laundering charges

Changpeng “CZ” Zhao is resigning as chief executive of cryptocurrency exchange Binance as part of a $4 billion settlement with US authorities over anti-money laundering violations (AML).

The settlement ends a Department of Justice (DOJ) investigation into the company Zhao founded. As part of the deal, he will plead guilty to AML charges in a Seattle federal court on Tuesday.

The DOJ and Commodities Futures Trading Commission are involved in the settlement. The SEC previously filed separate charges against Binance over allegedly misleading investors and inflating trading volumes.

Read More News:
SEC sues major crypto exchange Kraken
British ‘Cryptoqueen’ accomplice dodges U.S. extradition

Last September, Binance formed a Global Advisory Board featuring former US Senator Max Baucus to guide its compliance efforts. But authorities persisted with probes into whether the exchange properly monitored customer transactions for criminal activity.

Zhao’s resignation and guilty plea aim to draw a line under these issues, albeit at a high price for the pioneering crypto firm he built into an industry leader.