Binance CEO Changpeng Zhao Steps Down Amid Anti-money Laundering Violations

Changpeng Zhao, commonly known as CZ, has announced his resignation as the CEO of Binance, the world’s largest cryptocurrency exchange.

In a heartfelt message shared on social media, CZ acknowledged the emotional challenge of stepping down but emphasized that it was the right decision.

“Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has,” CZ stated.

The newly appointed CEO is Richard Teng, the former Global Head of Regional Markets at Binance.

Teng brings over three decades of financial services and regulatory experience to the role, having served as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market and Chief Regulatory Officer of the Singapore Exchange.

CZ expressed confidence in Teng’s leadership, highlighting his qualifications and commitment to guiding Binance through its next phase of growth. The focus will be on enhancing security, transparency, compliance, and overall expansion.

Binance CEO Changpeng Zhao was forced to step down as part of a major $4 billion settlement between United States agencies and the cryptocurrency exchange he founded.

The CEO pleaded guilty to anti-money laundering violations, including allowing transactions with Hamas.

Binance has now settled charges with the DOJ and Commodities Futures Trading Commission; the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), which will give the Treasury Department access to Binance’s books and records under the terms of a five-year monitorship.

“Because of the crimes committed, Binance became the largest cryptocurrency exchange in the world,” Merrick Garland, the US Attorney General, said during a press conference on Tuesday. “Now, Binance has paid one of the largest corporate penalties in US history.”

The Treasury Department said in a statement that it had taken “unprecedented action” to hold Binance accountable for violations of U.S. anti-money laundering laws. It alleged that Binance had failed to prevent and report “suspicious transactions with terrorists,” citing both Al Qaeda and ISIS. The settlement comes with a $3.4 billion penalty to FinCEN and $968 million to OFAC, as well as compliance requirements and monitoring for a period of five years.

Reflecting on his future plans, CZ mentioned taking a break and exploring passive investments, particularly in blockchain, Web3, DeFi, AI, and biotech startups.

While ruling out a return to the role of CEO, he expressed openness to coaching and mentoring a select group of emerging entrepreneurs.

In his message, CZ took pride in the resolutions with U.S. agencies, clarifying that they do not allege misappropriation of user funds or engagement in market manipulation, reassuring users that funds are “SAFU” (Secure Asset Fund for Users).

The unexpected leadership transition marks a new chapter for Binance, with the crypto community eagerly anticipating how the exchange will evolve under Richard Teng’s guidance.