In a shocking development, the CEO of Binance, Changpeng Zhao has stepped aside from his active role in the exchange. According to Zhao, popularly known as CZ, his resignation was necessitated by the intense regulatory scrutiny greeting Binance, particularly in the United States.
In a lengthy Twitter post, Changpeng Zhao pleaded guilty to all the money laundering charges leveled against him by the U.S. Department of Justice.
He added that his decision to step down manifested as part of the settlement agreements between the United States regulatory agencies and Binance. He admitted to making mistakes while serving as the CEO of the exchange and has now taken full responsibility for such. According to Changpeng Zhao, his decision to step down is the best for himself, the community, and Binance generally.
Meanwhile, Zhao has announced Richard Teng, the former Global Head of Regional Markets as the new CEO of Binance. He describes Teng as a qualified leader with over three decades of regulatory and financial services experience. Changpeng Zhao added that the new CEO will ensure that Binance delivers on its next phase of security, transparency, compliance, and growth.
Before joining Binance, Teng had earlier served as the CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM). He was also the Chief Regulatory Officer at the Singapore Exchange (SGX) and Director of Corporate Finance at the Monetary Authority of Singapore. Changpeng Zhao believes that Binance’s best days are closer with the appointment of Richard Teng as the new CEO.
Genesis of the regulatory ordeal facing Changpeng Zhao
Prior to his resignation, Changpeng Zhao was accused of operating an illegal exchange and sham compliance program by the Commodity Futures Trading Commission (CFTC). The agency also charged the exchange’s former compliance executive officer, Samuel Lim with the willful evasion of the U.S. law.
According to CFTC, the parties flouted the regulatory standards in the country for their commercial benefit. The agency also accused Changpeng Zhao of instructing his employees and customers to breach compliance measures.
Notably, the agency made reference to a report by Reuters which allegedly exposed how Binance has been running a sham compliance program. Don’t forget that Reuters conducted a series of investigations about the exchange’s compliance policies. According to Reuters, Changpeng Zhao instructed employees in Binance U.S. to register users without money laundering checks.
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