Changpeng Zhao, Binance’co-founder, has announced his resignation as the CEO of the prominent cryptocurrency exchange. In a lengthy statement on X (formerly Twitter), Zhao acknowledged the difficulty of the decision but noted that it was “the right thing to do.”
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
Zhao’s resignation marks the end of an era for Binance, a company he founded and led since its inception in late 2017. Under his leadership, Binance quickly became the largest crypto exchange in the world and has maintained that position. The company diversified its offerings by launching an NFT marketplace and acquiring key entities such as Trust Wallet and CoinMarketCap. Additionally, Binance played a pivotal role in the development of the BNB Chain, a “layer-1” blockchain competing with established platforms like Ethereum and Solana.
Richard Teng Takes Over As New CEO
Zhao also announced that Richard Teng, the former Global Head of Regional Markets, would be taking over as the new CEO of Binance.
For Teng, who joined Binance in August 2021, it’s the culmination of a series of quick promotions at the firm. He initially joined as the CEO of Binance’s Singapore office, after which he quickly became the regional head for the Middle East and North Africa (MENA) within four months. Less than a year later, Teng expanded his responsibilities to include Europe and MENA, with Asia incorporated shortly thereafter.
Teng’s regulatory experience as the former CEO of the Abu Dhabi Global Market’s Financial Services Regulatory Authority positions him strategically for his new role. Previously serving as the Chief Regulatory Officer of the Singapore Exchange (SGX) and Director of Corporate Finance at the Monetary Authority of Singapore (MAS), Teng brings a wealth of regulatory expertise to Binance.
Zhao’s and Binance’s Woes With US Authorities
U.S. Authorities, particularly the U.S. Department of Justice, have reportedly pushed for a change in the administration of the exchange. Meanwhile, Zhao’s resignation coincides with Binance agreeing to a settlement deal with U.S. authorities over allegations of violating critical financial regulations, including Anti-Money Laundering (AML) rules. The exchange faces a substantial penalty of approximately $4 billion.
As part of the settlement, Zhao pleaded guilty to AML charges, specifically, the violation of the U.S. Bank Secrecy Act. He also agreed to a $50 million fine. Reports suggest he may serve an 18-month prison term as part of the plea deal.
Binance’s settlement and leadership transition underscore a significant transformation in the crypto landscape, echoing challenges experienced by other notable figures and companies within the industry.
As Binance adapts to these changes, the crypto sector reflects on a whirlwind year filled with significant legal developments, including the recent conviction of FTX founder Sam Bankman-Fried on seven-count fraud charges.
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