Binance CEO Changpeng Zhao (CZ) is reportedly set to resign and admit guilt in a significant anti-money laundering probe. According to a report by The Wall Street Journal, Binance is expected to agree to pay a staggering $4.3 billion in fines for criminal and civil allegations.
This admission of criminal wrongdoing by Binance is seen as a strategic move to safeguard the company’s operational future. The deal, which includes fines to resolve both criminal charges and civil claims raised by regulatory authorities, aims to conclude prolonged inquiries into Binance’s operations.
Despite facing internal challenges with key executives departing and significant workforce reductions, Binance has maintained its market share, especially after the downfall of offshore rival FTX last year.
Under the terms of the reported deal, CZ will retain majority ownership of Binance but will step down from any executive role within the company. His sentencing will be scheduled for a later date.
Attorney General Merrick Garland is scheduled to conduct a press briefing at 3 p.m. ET on Tuesday, unveiling “distinct yet interconnected actions pertaining to cryptocurrency enforcement.” The briefing is expected to disclose a settlement agreement with Binance, according to information from sources familiar with the matter.
This development comes after the Justice Department’s probe into Binance and its top executives since at least December 2022. The outcome of this agreement is eagerly awaited and could have significant implications for the cryptocurrency industry.
The cryptocurrency community awaits the next steps in this unfolding Binance saga.