Published on Nov 22, 2023 at 12:00 p.m.Updated Nov. 22, 2023 at 12:32 p.m.
Changpeng Zhao, the boss of the world’s largest crypto exchange platform, Binance, has agreed to resign and plead guilty in a case pitting him against the American authorities, reported the Wall Street Journallast night.
During the day, we had already learned that the company was ready to pay $4.3 billion to settle several complaints. However, the fate of his boss, “CZ” as he is nicknamed, remained uncertain. He appeared in federal court the same day and decided to admit the violation of American laws on money laundering with which he was accused. Binance also chose to plead guilty during the hearing.“Binance, in pursuit of profit, has turned away from its legal obligationssaid Janet Yellen, Treasury Secretary of the Biden administration. Its willful failures allowed money to flow to terrorist groups, cybercriminals and pedophiles through its platform. » She is taking the charge with the Commodity Future Trading Commission (CFTC), which was investigating the company and made its complaint public in March.
Mea culpa
“I made mistakes and I must take responsibility,recognized CZ on the social network. This is what is best for our community. » And no one will tell him otherwise, because his company seemed threatened by no longer being able to carry out any activity, directly or indirectly, in the United States. Already, its dollar stablecoin, BUSD, can no longer be issued, and is no longer, due to a request from the American authorities.
The CEO will therefore no longer have an executive role in the company and will never be able to take on responsibilities, but he will retain the majority of shares. He will still have to pay a fine of $50 million personally.
Binance remains sued by the Securities and Exchange Commission (SEC) for other grievances, but the worst is undoubtedly over. The SEC and the CFTC are fighting over the regulation of the cryptocurrency sector in the United States and the latter could emerge victorious. This would call into question the legal foundations of the SEC’s complaints, which is very virulent against the industry and perhaps not willing to find a compromise, while Binance has in the meantime redeemed itself a virginity. CZ agrees to take the blame and certainly saves his company. It will nevertheless have to leave the United States, but not its subsidiary Binance.US. The company therefore keeps one foot in the country and will now be able to develop there more peacefully.