Earthquake in Binance! $4 billion “settlement.” Changpeng Zhao steps down

The largest in the world giełda kryptowalut Binance reaches a settlement with the US Department of Justice. This means almost literally that her boss, Changpeng Zhao (CZ), pleaded guilty to at least some of the charges, including: money laundering. CZ is also resigning from the position of CEO because he may also face a criminal case in this regard.

A few months ago, Changpeng Zhao, CEO and founder of the world's largest cryptocurrency exchange Binance he wrote to his employees that they should prepare for the fact that the coming months would be difficult, but that things would only get better later, and not the best news could be expected. Most investors, however, had in mind difficulties with transfers, periodic lack of liquidity or restrictions on Binance's operations in countries where restrictions on cryptocurrency trading are too strict. Few people expected such a bomb. And yet it just exploded.

USD 4 billion as part of the "settlement". Isis, Al Qaeda and Hamas in the background

Settlement is not unusual in the US legal market. However, its conditions are crucial. And these clearly indicate that the arrangement is for what Binance went with the Department of Justice, it's nothing more than an admission of guilt.

As part of the settlement, Binance must pay as much as USD 4 billion in fines for:

"violations of anti-money laundering requirements".

Information has already appeared on the Internet that the stock exchange was used by terrorist organizations such as Al Qaeda and Isis, as well as the Palestinian Hamas, which is fighting with all means against Israel.

Moreover, criminal charges are expected in the near future against the founder and head of Binance Changpeng Zhao, who has therefore decided to resign from his position. He took his place Richard teng, previously Global Director for Regional Markets. He previously served as Director General of the Abu Dhabi Global Market Financial Services Authority (ADGM), Director of Regulation of the Singapore Exchange (SGX), and Director of Corporate Finance at the Monetary Authority of Singapore.

Funds in Binance are completely safe

Upon leaving, Changpeng Zhao issued a statement emphasizing that Binance has never knowingly participated in criminal activities or market manipulation, and all funds collected on the exchange are 100 percent safe.

Changpeng Zhao Statement:

“Today I stepped down as CEO of Binance. It must be admitted that it was not easy to release emotions. But I know it's the right thing to do. I made mistakes and I have to take responsibility. This is best for our community, for Binance and for me.

Binance is no longer a baby. It was time for me to let him walk and run. I know that Binance will continue to grow and differentiate itself thanks to the deep platform it has.(…)

As a shareholder and former CEO with historical knowledge of our company, I will remain at the team's disposal to consult with them as needed, in accordance with the framework set out in the resolutions of our US agencies.

What's next for me?

I'll take a break first. I haven't had a single day of real break (turning off my phone) in the last 6 XNUMX/XNUMX years.

After that, I think I will probably make passive investments by being a minority token/shareholder in startups in the areas of blockchain/Web3/DeFi, AI and biotech. I'm excited to finally have more time to look at DeFi.

I don't see myself as a CEO running a startup again. I am content with being a one-time (happy) entrepreneur. If there is an audience, I may be open to being a coach/mentor to a small number of future entrepreneurs, privately. If nothing else, I can at least tell them what not to do.

In this regard, I am proud to note that in our resolutions with US agencies:

• do not allege that Binance misappropriated any user funds, and
• they do not accuse Binance of participating in any market manipulation.

The funds are safe!”

As you can guess, the Binance Coin (BNB) price reacted with a depreciation, but compared to the scale of this "news", it is not a spectacular panic. Does the market, despite this, believe in a bright future for the stock exchange?

BNB rate, depreciation due to news of the Binance settlement. Source: Binance platform