Changpeng Zhao Resigns From Binance CEO After Confessing Guilty On Money Laundering Charges

Changpeng Zhao resigned from Binance CEO. (Photo; Doc. Cryptakias)

JAKARTA - Binance, one of the largest crypto exchanges in the world, experienced a major shock after its CEO, Changpeng Zhao, pleaded guilty to money laundering charges. Zhao faces prison sentences and large fines, and has to give up his position in Binance.

On November 22, 2023, Changpeng Zhao, better known as CZ, admitted that he was involved in money laundering activities through Binance, a crypto trading platform he founded in 2017. This admission took place before federal judges in Seattle on November 21, as revealed by The New York Times.

According to the newspaper, Zhao agreed to pay a fine of 50 million US dollars (Rp778 billion) as part of his plea deal. This fine is different from the settlement achieved by Binance with the United States Department of Justice (DOJ), which reached 4.3 billion US dollars (Rp66.9 trillion).

This settlement is the result of a long investigation conducted by DOJ on Binance for alleged violations of financial law, including money laundering, tax evasion, and illegal trade.

In addition to fines, Zhao also faces a prison sentence of 18 months, in accordance with the maximum limit set by federal law. Prosecutors at DOJ said they would demand the sentence for Zhao, although judges still have the authority to give a lighter or heavier sentence.

Zhao must also resign from his position as CEO of Binance, which is one of the conditions for his plea deal. Zhao announced his resignation via a post on X, a social media platform popular with crypto enthusiasts, on the same day.

In his post, Zhao admitted that he made a mistake and had to take responsibility for his actions. He also said that his resignation was the best thing for the crypto community, for Binance, and for himself. He expressed his gratitude to the team, partners, and Binance users, and apologized for the inconvenience caused by his case.

Zhao also conveyed his plans for the future, which includes becoming a private investor in areas related to blockchain, the technology underlying crypto. He emphasized that he still supports Binance and would advise if requested. He also mentioned that he still owns shares in Binance.

However, The New York Times reports that Zhao will not be able to engage in Binance operations over the next three years, as part of the surveillance requirements imposed by DOJ. Binance must receive a supervisor appointed by DOJ to ensure that the company complies with applicable financial laws and regulations.

Zhao also provided an explanation of Binance's settlement with DOJ, which he claims is a positive step for Binance's future. He stressed that the settlement did not mean that Binance was guilty of the accusations made by DOJ, such as using user funds illegally or carrying out market manipulation. He also guaranteed that Binance would continue to operate normally and provide the best service to its users.