In a surprising turn of events, CEO Changpeng Zhao of Binance, a major cryptocurrency platform founded in 2017, has agreed to resign and plead guilty to violations of US anti-money laundering regulations. According to sources cited by The Wall Street Journal, this deal will allow the company to continue operating.
On Tuesday afternoon local time in Seattle, Washington state, Changpeng Zhao will enter his guilty plea in a federal court. Despite this admission of guilt, he will retain a majority stake in the company. However, he will no longer hold an executive role in management. The man himself will be sentenced for his actions at a later date.
The agreement reached with US authorities puts an end to a long investigation into Binance, which is widely considered the most significant international hub for cryptocurrencies. This resolution allows the CEO to maintain control over the company while accepting responsibility for its past actions.
It was announced at the end of August that Binance would remain active in Belgium through a Polish license. Financial regulator FSMA had previously ordered Binance to discontinue its cryptocurrency services in Belgium and transfer all funds back to customers due to illegal operations from countries outside the European Economic Area. While these links do not appear related to the previous text, they do highlight ongoing regulatory challenges faced by cryptocurrency companies worldwide.