Binance will pay $1.81 billion over 15 months, as well as $2.51 billion as part of a deal with the US Department of Justice. At the same time, the head of the exchange Changpeng Zhao (CZ) will personally pay $50 million. This is reported by Reuters.
The agreement with the American authorities prohibits CZ from any participation in the activities of the largest cryptocurrency exchange.
Charges have also been brought against former Binance chief compliance officer Samuel Lim, a source familiar with the matter told Reuters.
Meanwhile, former head of regional markets at Binance, Richard Teng, published a post with information about his appointment as CEO of the largest exchange.
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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
“With the support of CZ and our leadership, I have accepted this role so that we can continue to meet and exceed stakeholder expectations while achieving our core mission of money freedom overnight,” the executive wrote.
He emphasized that “the foundation on which Binance stands today is stronger than ever.”
Against the backdrop of what is happening, BNB is showing significant volatility. Over the past 24 hours, the price of the coin has dropped by more than 6%.
BNB/USDT hourly chart. Data: TradingView.
On June 5, the SEC filed a lawsuit against Binance and Zhao, bringing 13 charges, including the sale of unregistered securities. On June 6, the regulator sent a request to freeze the digital assets of the American division of the exchange.
On June 9, users lost the ability to deposit dollars, which caused sales from those wishing to withdraw funds in fiat. Against this background, a discount has formed on the platform in Bitcoin quotes paired with the dollar – the figure reached ~$2200 (7.3%).
On June 17, the SEC and Binance entered into an agreement regarding client funds in the United States. The exchange resumed the withdrawal of assets, but the company warned that the situation could change.
Earlier today, it was reported that the US Department of Justice had requested $4 billion from Binance as part of a deal that would end the ongoing criminal investigation.
According to Bloomberg sources, negotiations between the parties suggest the possibility that the head of the trading platform, Changpeng Zhao, will be charged with money laundering, financial fraud and violating sanctions.
Later WSJ reported, that CZ agreed to leave his position, pleading guilty to the violations alleged by the US authorities. At the same time, the exchange agreed to pay fines totaling $4.3 billion.
The deal allegedly involves the possibility of Binance continuing to operate while Zhao retains a controlling stake.
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2023-11-21 20:40:09
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