In 2018, the U.S. Department of Justice began investigating Binance, the world's largest cryptocurrency trading platform, for suspected unlicensed remittances, money laundering, and violations of U.S. sanctions.
Just last night, after 5 years of tug-of-war, Binance finally reached a settlement with the U.S. Department of Justice, the Commodity Futures Trading Commission, the Office of Foreign Assets Control, and the Financial Crimes Enforcement Network by pleading guilty and paying a fine. The settlement marks the company's acknowledgment of past criminal compliance violations and says it will use this as an opportunity to lay the foundation for the next 50 years of development. Binance will pay a $1.8 billion fine within 15 months and forfeit $2.5 billion in assets.
Shenyu, co-founder of Cobo, expressed his views on this matter immediately: The regulatory settlement agreement reached between the U.S. Department of Justice and Binance has paved the way for ETFs. Thank you CZ for your outstanding contribution to the industry. Let us explore the infinite possibilities of DeFi together!
CZ, the founder, appeared in a Seattle court and agreed to plead guilty and resign as CEO of Binance. He will not continue to hold an executive position, but will retain a majority stake in Binance. CZ has been released on a $175 million personal bond, and the sentencing hearing is scheduled for February 24, 2024, Beijing time. The new CEO is replaced by Richard Teng, the company's former global regional market head.
CZ published an open letter on Twitter, translated by Bai Ze Research Institute as follows.
Today, I am stepping down as CEO of Binance. It is admittedly not easy emotionally. But I know it is the best choice, I made mistakes and I must take responsibility. This is best for our community, Binance, and myself. Binance is no longer a baby. It is time for me to let it go and run. I know Binance will continue to grow and excel with its strong bench. I am pleased to announce that our current former Global Head of Regional Markets, Richard Teng, has been appointed as the new CEO of Binance today.
Teng is a highly qualified leader with over three decades of financial services and regulatory experience who will lead the company through its next period of growth. He will ensure Binance achieves its next phase of security, transparency, compliance, and growth. Prior to joining Binance, Richard served as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM); Chief Regulatory Officer at Singapore Exchange (SGX); and Director of Corporate Finance at the Monetary Authority of Singapore. Together with Richard and the entire team, I believe the best days for Binance and the crypto industry are ahead.
As a shareholder and former CEO with knowledge of our company’s history, I will be on hand to provide the team with necessary counsel, consistent with the framework set out in our U.S. agency resolution.
What will I do next? I’ll take a break first. I haven’t really taken a day off (turned off my phone) in the past six and a half years. After that, my current thinking is that I might do some passive investing and become a minority token holder or shareholder in startups in the blockchain/Web3/DeFi, AI, and biotech sectors.
I’m glad I finally have more time to work on DeFi. I can’t imagine myself ever again as a CEO driving a startup. I’m content to be a one-time (lucky) entrepreneur. If there’s an audience, I might be willing to privately serve as a mentor to a handful of upcoming entrepreneurs. I can at least tell them what not to do.
At this point, I am proud to state that in our resolution with the US agencies, they:
- There is no allegation that Binance misappropriated any user funds,
- There are no allegations that Binance engaged in any market manipulation.
Financial security!
I therefore look forward to seeing the new leadership come in. Please join me in congratulating Teng on his well-deserved promotion.
Go ahead!
CZ
Under the open letter, numerous industry players expressed their respect and gratitude for CZ’s journey at Binance.
Erik Voorhees, Founder of ShapeShift:
CZ, you are one of the great heroes on the front lines of this epic struggle in crypto and you should be very proud of Binance. Thank you!
Memeland COS Char：
Thank you for your hard work and passion in the crypto industry, CZ! It’s a sad day, the end of an era, like no other.
Justin Sun, founder of Tron:
CZ, I have known you for almost ten years, and in those ten years you have been leading the community, the industry, and me. In the past six years, you have built Binance and pushed the industry to unprecedented heights. Without you, the cryptocurrency industry would not be where it is today. I am a little sad to think about you leaving this position, but I am really happy for you when I think about you will have more time to rest and enjoy life. Thank you for everything you have done for the entire industry.
Floki core contributor Da Viking:
You are a legend, CZ! I remember how difficult it was to buy altcoins back in 2017 and how you changed the game forever with Binance! You revolutionized the industry and have done more than anyone to make crypto (especially altcoins!) accessible to the masses. You don’t get enough recognition for all you’ve done for the industry and it breaks my heart today to be honest! I hope you’ll at least continue to share your insights on crypto (and anything really!) with us!
Note:
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