Zhao Plea Agreement: Zhao will plead guilty to violations of the Bank Secrecy Act (BSA) and other related laws. He has agreed to a fine of $50 million, which will be credited against payments made to the Commodity Futures Trading Commission (CFTC) if paid by the sentencing date. Zhao is prohibited from making any public statements contradicting his admission of guilt or the facts established in the case. Binance Plea Agreement: Binance will plead guilty to operating an unlicensed money transmitting business, violating the BSA, and conducting prohibited transactions with Iran. Binance agrees to the facts stated in the plea agreement and commits to full cooperation with the government. Zhao has resigned as CEO of Binance, and the company has barred him from future involvement in its operations for three years from the date a monitor is appointed. Binance must enhance its compliance program and appoint an independent monitor for three years. At the plea agreement's end, Binance's CEO and chief compliance officer must certify compliance with the plea agreement terms. Binance consents to a fine of approximately $1.805 billion, reflecting a discount for partial cooperation, to be paid within 15 months post-sentencing. Binance will also pay a money judgment of approximately $2.511 billion, part of which is related to transactions with U.S. users and another part related to transactions involving Iran, to be paid within specific timeframes post-sentencing. Binance, like Zhao, cannot make public statements contradicting their acceptance of responsibility or the facts described in their respective plea agreements.
CZ statement Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself. 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. I’m pleased to announce that @_RichardTeng , our now former Global Head of Regional Markets, has been named the new CEO of Binance today. Richard is a highly qualified leader and, with over three decades of financial services and regulatory experience, he will navigate the company through its next period of growth. He will ensure Binance delivers on our next phase of security, transparency, compliance, and growth. Prior to joining Binance, Richard was CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM); Chief Regulatory Officer of the Singapore Exchange (SGX); and Director of Corporate Finance in the Monetary Authority of Singapore. With Richard and the entire team, I’m confident that the best days for @Binance and the crypto industry lay ahead. As a shareholder and former CEO with historical knowledge of our company, I will remain available to the team to consult as needed, consistent with the framework set out in our U.S. agency resolutions. What’s next for me? I will take a break first. I have not had a single day of real (phone off) break for the last 6 and half years. After that, my current thinking is I will probably do some passive investing, being a minority token/shareholder in startups in areas of blockchain/Web3/DeFi, AI and biotech. I am happy that I will finally have more time to spend looking at DeFi. I can’t see myself being a CEO driving a startup again. I am content being an one-shot (lucky) entrepreneur. Should there be listeners, I may be open to being a coach/mentor to a small number of upcoming entrepreneurs, privately. If for nothing else, I can at least tell them what not to do. On that note, I am proud to point out that in our resolutions with the U.S. agencies they: - do not allege that Binance misappropriated any user funds, and - do not allege that Binance engaged in any market manipulation. Funds are SAFU! With that, I look forward to seeing the new leadership take the reins. Please join me in congratulating Richard on his well-deserved promotion. Onwards! CZ
I will say I see NOTHING similar about CZ/Binance and Sam/FTX (before people make that comparison) CZ is guilty of being too lax with KYC/AML stuff. They(Binanace) also should of just never touched the US, something I am sure he regrets. No customer funds were used/"misplaced" (as far as we know). All customers are whole Sam straight up stole customers' money through a backdoor, lied about it, and bet it on BS air tokens. Oh and tried to buy his way out of trouble through political donations. 100% different.
I will say i've been with Binance since 2018, and although i know CZ was very laxed on the rules in the US, which was very easy for anyone to get away with breaking rules not allowed in other exchanges. He had the best security and even reimbursed any accounts that were hacked. I never felt more secure leaving my funds on that exchange, way more than i did at any US bank. The old Binance will be missed, CZ with it. Its ashame regulators pick on Binance for funding terrorists when in fact its being done at any other exchange or even US banks.Regulators doing the same corruption they are enforcing. Ridiculous...
I think it's highly questionable that binance can continue as a going concern with USG monitors permanently up their ass. What's left when you strip away the money laundering, ponzis, scams and rackets? I'd say custodying BTC, but they can't even do that.
Whats left?? Dude they have 150,000,000 customers! And they were able to cut a check for 4BB+ without dying. I think there is a lot there
The fine should have been much higher and a collation of governments should have put them permanently out of business. Binance is nothing more than a global money laundering operation supporting terrorist and illegal activity. Binance Was Used to Funnel Money to Hamas, Other Militant Groups Binance compliance chief acknowledged Hamas funding in 2019 Exchange ‘enabled a range of illicit actors,’ Treasury said https://www.bloomberg.com/news/arti...d-in-4-3-billion-settlement-with-us#xj4y7vzkg