FX.co ★ Binance CEO Changpeng Zhao to resign amid legal troubles

According to Forbes, Changpeng Zhao, the CEO of the world's largest cryptocurrency exchange Binance, is ready to admit his guilt and resign. Richard Teng, the head of Binance in Asia, Europe, and the Middle East, is a contender for the CEO position. The US Department of Justice previously accused Zhao of money laundering, financial fraud, and violating sanctions. To resolve the issue, the department is willing to make a deal with the cryptocurrency exchange to conclude the criminal investigation that began in 2018. As part of the agreement, the department requires Binance to pay fines exceeding $4 billion. In June 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO. The cryptocurrency exchange and its management were charged with illegal securities transactions. The situation is worsened by Zhao's illegal actions, specifically misleading investors about regulatory mechanisms. The SEC emphasized that the Binance CEO publicly stated that US clients were prohibited from making transactions on the exchange. Nevertheless, Zhao allowed US clients to trade. These manipulations have added to similar accusations from the Commodity Futures Trading Commission (CFTC). Against this backdrop, the BNB cryptocurrency, which supports the Binance Chain ecosystem, plummeted by 7.5%. Earlier this year, Zhao was recognized as the wealthiest person in the cryptocurrency industry. Currently, Forbes estimates his net worth, which has significantly decreased, at $10.2 billion, down from $65 billion a year ago.