Why is CZ resigning from Binance?
According to sources familiar with the matter, Changpeng Zhao, the CEO of Binance, the world’s largest cryptocurrency exchange, plans to resign and admit to violating the United States’ anti-money laundering requirements, with a deal that could allow the company to continue its operations…
According to the Wall Street Journal, he is scheduled to defend himself in federal court in Seattle on Tuesday afternoon.
According to the New York Times, Zhao has reportedly accepted the acknowledgment of money laundering violations based on court documents. As part of the defense, he will pay a $50 million fine, resign, and be banned from being involved in the company in the future. Forbes also added that the departure might be part of a $4 billion deal negotiated with the U.S. Department of Justice (DOJ). On Monday, Bloomberg reported that the Justice Department is seeking billions of dollars to conclude its long-running investigation into the company. The deal will involve negotiations with the DOJ and the Commodity Futures Trading Commission, while the Securities and Exchange Commission (SEC) is not participating.
It’s worth remembering this information:
In June, the SEC accused Binance and its founder CZ of operating an unregistered exchange by using Sigma Chain, a Swiss-based fund owned by CZ, to inflate trading volume on Binance’s U.S. platform and mislead investors. SEC Chairman Gary Gensler stated in June, ‘With thirteen counts, we allege comprehensive deception, conflicts of interest, lack of disclosure, and an overarching scheme to violate the law involving Zhao and Binance entities.’
The events on Tuesday, although perceived as delayed by many, simultaneously became one of the biggest nightmares in the crypto industry. While there is no official statement from Binance detailing the future course of action on the exchange, considering the resignation and agreement, a collapse similar to FTX seems unlikely.
After CZ’s resignation, what happened to the value of Binance Coin?
Following the release of this news, BNB experienced rapid fluctuations. Within just a few minutes, there were fluctuations of up to 15%. While it was trading in the range of 240-245 during the day, after the news, BNB rapidly declined to the 230s and then rose to the 270s.