Changpeng Zhao to Pay $50 Million in Deal with U.S. Justice Department
Binance has agreed to pay $1.81 billion over 15 months and an additional $2.51 billion as part of an agreement with the U.S. Department of Justice. CEO Changpeng Zhao (CZ) will personally contribute $50 million, as reported by Reuters.
In line with the agreement, CZ is prohibited from participating in the management of the world's largest cryptocurrency exchange.
Charges have also been brought against Samuel Lim, former Binance director of compliance, according to a Reuters source.
Meanwhile, Richard Teng, former head of regional markets at Binance, announced his appointment as the exchange's CEO.
With the support of CZ and our leadership, I have accepted this role to continue exceeding our stakeholders' expectations, in line with our mission of money freedom - he stated, emphasizing the stability of Binance's foundation.
On June 5th, the SEC accused Binance and Zhao of 13 charges, including selling unregistered securities. On June 6th, a petition was filed to freeze the assets of the exchange's American division.
On June 9th, users lost the ability to make dollar deposits, leading to mass sales. This caused a discount in Bitcoin quotations compared to the dollar.
On June 17th, the SEC and Binance reached an agreement on client funds in the U.S., allowing for the resumption of asset withdrawals.
Earlier today, it was reported that the U.S. Department of Justice requested $4 billion from Binance to settle an ongoing criminal investigation.
According to Bloomberg, negotiations may include charges against CZ for money laundering and financial fraud.
The WSJ reported that CZ agreed to step down as CEO, admitting guilt in the violations identified by U.S. authorities. Binance agreed to pay $4.3 billion in fines.
The deal stipulates that CZ retains the controlling stake in Binance, allowing the exchange to continue its operations.
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