Binance CEO Changpeng Zhao resigns and pleads guilty.
Binance delisting of 10 major coins as regulatory response.
Binance restructures leadership and commits to compliance.
Binance, the world’s largest cryptocurrency exchange, is making significant moves in response to a groundbreaking settlement with the US Securities and Exchange Commission (SEC).
The exchange has announced the delisting of 10 major trading pairs, including notable cryptocurrencies such as Aptos (APT), Axie Infinity (AXS), and Filecoin (FIL).
Changpeng Zhao’s resignation and $4B Penalty
In a surprising turn of events, Binance founder Changpeng Zhao, commonly known as CZ, has decided to step down from his role as CEO in the wake of a comprehensive settlement with the SEC we reported earlier.
The settlement stems from criminal charges against Binance, including breaking sanctions and money-transmitting laws. As part of the deal, CZ has pleaded guilty to charges related to violating the Bank Secrecy Act and causing a financial institution to violate it. The penalty for these charges is a staggering $4.3 billion, making it one of the largest settlements the US has ever obtained from a corporate defendant.
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…
— CZ 🔶 Binance (@cz_binance) November 21, 2023
Delistings coincide with regulatory fallout
Binance’s decision to delist 10 major trading pairs, including APT, AXS, and FIL, is particularly noteworthy as it aligns with the regulatory turmoil surrounding the exchange.
According to the official announcement by Binance, the affected pairs are specifically tied to Binance’s stablecoin, BUSD. The delisting is in line with Binance’s phased termination of BUSD-related services.
This move, however, comes in the aftermath of revelations that Binance employees were aware the company was serving users in sanctioned countries, knowingly violating US laws. The SEC’s scrutiny has prompted a significant reshaping of Binance’s operations.
Binance’s pledge to restructure and compliance
In response to the settlement and regulatory challenges, Binance has acknowledged the resolutions reached with various agencies.
The exchange emphasized its commitment to restructuring over the past few years, highlighting its “new leadership with deep compliance experience.”
Richard Teng, a former Abu Dhabi regulator and Binance’s regional markets head, is set to take over as the new CEO. Despite the setbacks, Binance expressed confidence that it would emerge as a stronger company, laying the foundation for the next 50 years.
As part of the settlement, Binance will have to appoint an independent compliance monitor for three years and report its efforts to comply with US regulations.
These developments mark a significant moment in the cryptocurrency industry, underlining the increasing scrutiny and regulatory challenges faced by major players. As Binance navigates the fallout from the SEC settlement, the delistings are a strategic move to align its operations with regulatory expectations and pave the way for a new era under fresh leadership.
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