Binance names new chief executive. CZ says he has acknowledged his mistakes

The cryptocurrency exchange Binance said that Richard Teng, head of regional markets, will replace Changpeng Zhao (CZ) as 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 took on this role so that we could continue to meet and exceed stakeholders’ expectations, as we simultaneously achieve our core mission—the freedom of money,” wrote the top executive.

He stressed that “the foundation on which Binance stands today is stronger than ever.”

Teng also outlined what he would focus on in his work:

• assuring users that they can remain confident in the company’s financial stability and security;
• working with regulators to globally uphold high standards that foster innovation while ensuring consumer protection;
• working with partners to spur growth and adoption of Web3.

Changpeng Zhao, in an extensive post, expressed regret for his mistakes and introduced the new head of the company.

Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.

Binance is no longer a baby. It is…

— CZ ? Binance (@cz_binance) November 21, 2023

“Today I stepped down as Binance’s CEO. Naturally, it wasn’t easy to control my emotions. But I know this is the right thing to do. I made mistakes and I must take responsibility,” wrote CZ.

He added that Binance is “no longer a child” and the company “will grow and prosper.”

Representatives said the company had reached an agreement with several U.S. agencies regarding their investigations.

We’re pleased to share we’ve reached resolution with several US agencies related to their investigations.

This allows us to turn the page on a challenging yet transformative chapter of learning that has helped us become stronger, safer, and an even more secure platform.

— Binance (@binance) November 21, 2023

“This will allow us to turn the page on a difficult but transformative chapter of learning that has helped us become a stronger and safer platform,” noted Binance.

According to the indictment, the exchange was used to finance terrorism, launder money, and other illicit activities, enabling transactions for Hamas, ISIS, other terrorist organizations, and residents of sanctioned jurisdictions.

Today, @USTreasury announced the largest enforcement action in our history against Binance, the world’s largest virtual currency exchange. This action is a result of Binance’s egregious violations of U.S. anti-money laundering and sanctions laws. https://t.co/V4IM0b16H3

— Treasury Department (@USTreasury) November 21, 2023

“This will allow us to turn the page on a difficult but transformative chapter of learning that has helped us become a stronger and safer platform,” noted Binance.

Binance will fully exit the United States under the agreement with FinCEN and will appoint a five-year monitor to oversee the exchange’s sanctions‑compliance program.

During this period, the U.S. Treasury will have access to the platform’s data and systems. But Binance.US will not be affected.

As part of the settlement, the company will pay FinCEN $3.4 billion and OFAC $968 million.

On June 5, the SEC filed suit against Binance and Zhao, alleging 13 counts, including the sale of unregistered securities. On June 6, the regulator filed a motion to freeze the exchange’s U.S.-based digital assets.

On June 9, users lost the ability to deposit dollars, triggering selling by those seeking to withdraw funds in fiat. In response, a discount in Bitcoin quotes against the dollar formed on the platform — the price reaching about $2,200 (7.3%).

On June 17, the SEC and Binance reached an agreement regarding customer funds in the United States. The exchange resumed withdrawals, but warned the situation could change.

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

Later, the WSJ сообщила that CZ agreed to step down, admitting guilt to the violations alleged by U.S. authorities. The exchange agreed to pay total fines of $4.3 billion.