Binance Founder and CEO Changpeng Zhao, commonly known as “CZ,” attends the “CZ meets Italy” at Palazzo Brancaccio on May 10, 2022 in Rome, Italy.
Antonio Masiello Getty Images
Former Binance CEO Changpeng Zhao on Tuesday named a new CEO of the cryptocurrency exchange he founded after pleading guilty to federal money laundering charges and stepping down as the company’s chief executive.
In a post about X, Zhao said that he “must take responsibility”, and that it was “not easy to let go emotionally.” The controversial crypto-entrepreneur, who was accused of violating the US Bank Secrecy Act and sanctions violations, added that he was “proud to point out” US agencies did not claim Binance had misappropriated user funds or market manipulation.
The case against Binance, which was unsealed on Tuesday afternoon, shows that the exchange faces three criminal charges, including conducting an unlicensed money transmission business in violation of the International Emergency Economic Powers Act, as well as a conspiracy charge. The exchange agreed to $4.3 billion in fines and forfeiture.
The former head of Binance will personally plead guilty to violating and causing a financial institution to violate the Bank Secrecy Act, according to the plea agreement. The DOJ also recommends that the court impose a $50 million fine on Zhao.
The settlement comes on the heels of FTX founder Sam Bankman-Fried being found guilty of multiple felony counts of fraud and conspiracy after just three hours of jury deliberation. For a high-profile month-long trial that involved nearly 20 witnesses and hundreds of exhibits, experts told CNBC they had never seen such a swift decision.
“I can’t see myself as a CEO running a startup again. I’m content to be a one-time (lucky) entrepreneur,” Zhao said. “Should there be listeners, I can be open to being a coach/mentor to a small number of up-and-coming entrepreneurs, privately. If for nothing else, I can at least tell them what not to do.”
Zhao named Richard Teng, former CEO of Abu Dhabi Global Market, the UAE capital’s financial services regulator, as Binance’s new CEO. Teng was most recently global head of regional markets at Binance. He was also previously director of corporate finance at the Monetary Authority of Singapore.
He said Teng is “a highly qualified leader and, with more than three decades of financial services and regulatory experience, he will navigate the company through its next period of growth.”
“He will ensure that Binance fulfills our next phase of security, transparency, compliance and growth,” Zhao added.
The remarks mark the first public comments made by Zhao since he agreed to a plea deal with the US Department of Justice earlier on Tuesday.
Zhao was scheduled to appear before Judge Brian Tsuchida for a hearing in a Seattle courtroom at 10:00 am Pacific Time (1:00 pm ET).
(tagsTo Translate) Cryptocurrency