Changpeng Zhao, the founder and CEO of Binance, pleaded guilty to federal criminal charges and appointed Richard Teng as the new CEO. He faces fines and forfeiture as part of a plea agreement with the U.S. Department of Justice.
Changpeng Zhao Pleads Guilty and Steps Down as Binance CEO
Changpeng Zhao, the founder and CEO of Binance, pleaded guilty to federal criminal charges related to money laundering and stepped down from his position.
Richard Teng Named as New Binance CEO
Following his plea deal, Zhao named Richard Teng, a former CEO of Abu Dhabi Global Market, as the new CEO of Binance. Teng, with extensive financial services and regulatory experience, aims to lead the company’s growth and uphold high standards globally.
Zhao’s Response and Settlement Details
Zhao expressed his responsibility and emotional difficulties in a public post, acknowledging his pride in the absence of allegations against Binance for user fund misappropriation or market manipulation. The settlement includes $4.3 billion in fines and forfeiture, with a $50 million fine recommended for Zhao.
Implications of the Plea Deal
The case against Binance revealed three criminal charges, resulting in a significant financial settlement and severe penalties for Zhao. It also follows the conviction of FTX founder Sam Bankman-Fried for fraud and conspiracy.
Richard Teng’s Plans as CEO
Richard Teng outlined his focus on financial strength, security, collaboration with regulators, and partnership growth to drive adoption of Web3. With support from the leadership team, Teng aims to steer Binance through its next phase.