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As part of a comprehensive agreement with the US Department of Justice (DOJ), cryptocurrency exchange Binance has agreed to delist trading pairs and prepare for a complete withdrawal from the US market. This decision, which was made public on Tuesday, involves a substantial penalty of $4.3 billion. To make matters worse, Changpeng Zhao (CZ), the CEO of Binance, resigned from his leadership position following his guilty plea to operating without a license and conspiracy.
CZ faces an individual fine of $50 million and a prison term of up to 18 months. Sentencing is scheduled for February 23, although there is a possibility of a delay. Although he has relinquished his management duties, CZ retains his stake in the company. As he leaves his role at Binance, CZ expressed his desire to move beyond this difficult period.
To ensure compliance in the future, a five-year oversight body will oversee the company’s activities and the Treasury will have full access to Binance data. This legal settlement marks a significant change in the regulatory landscape for cryptocurrency exchanges operating in the United States and could have significant implications for the industry.
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