Changpeng Zhao to pay $50 million under U.S. DOJ settlement

Binance will pay $1.81 billion over 15 months, and $2.51 billion as part of the settlement with the U.S. Department of Justice. Meanwhile, the exchange’s chief Changpeng Zhao (CZ) will personally pay $50 million. Reuters reports.

The agreement with U.S. authorities bars CZ from any involvement in the operations of the world’s largest cryptocurrency exchange.

Charges were also brought against Binance’s former chief compliance officer Samuel Lim, Reuters sources familiar with the matter said.

Meanwhile, Binance’s former regional markets head Richard Teng posted a message about his appointment as the company’s CEO.

It is an honour and with the deepest humility that I step into the role of Binance’s new CEO.

We operate the world’s largest cryptocurrency exchange by volume. The trust placed on us by our 150m users and thousands of employees is a responsibility that I take seriously and hold…

— Richard Teng (@_RichardTeng) November 21, 2023

«Thanks to CZ’s support and our leadership, I accepted this role so that we can continue to justify and exceed stakeholders’ expectations, while simultaneously achieving our core mission — the freedom of money,» the senior executive wrote.

He stressed that «the foundation on which Binance stands today is stronger than ever».

Against the backdrop, BNB has shown considerable volatility. In the last 24 hours the coin’s price has fallen by more than 6%.

On June 5, SEC filed a lawsuit against Binance and Zhao, accusing them of 13 counts, including the sale of unregistered securities. On June 6, the regulator filed a motion to freeze the U.S. unit’s digital assets.

On June 9, users lost the ability to deposit dollars, which spurred selling from those seeking to withdraw funds in fiat. Against this backdrop, the platform looked at a discount in Bitcoin quotes against the dollar—the price reached about $2,200 (7.3%).

On June 17, the SEC and Binance reached a settlement regarding customer funds in the U.S. The exchange resumed withdrawals of assets, but warned that the situation could change.

Earlier reports indicated that the U.S. Department of Justice sought $4 billion from Binance as part of a deal that would end the ongoing criminal investigation.

According to Bloomberg sources, talks between the parties include the possibility that the head of the trading platform Changpeng Zhao will face charges of money laundering, financial fraud, and sanctions violations.

Later, the WSJ reported that CZ agreed to step down, pleading guilty to the violations alleged by U.S. authorities. The exchange, meanwhile, agreed to pay penalties totaling $4.3 billion.

The deal reportedly envisions Binance continuing operations with Zhao retaining a controlling stake.