Changpeng Zhao, the founder and former CEO of Binance, has been permanently banned from the cryptocurrency exchange as part of a settlement with the U.S. Department of Justice (DOJ). The major development was confirmed by current CEO Richard Teng in an interview with Axios.
Investigation into violations of sanctions laws
The settlement followed an extensive investigation in which Binance was accused of multiple violations, including violating sanctions laws and the Bank Secrecy Act. According to the DOJ, Binance intentionally served U.S. customers without proper regulatory compliance, which resulted in the facilitation of illegal activity by criminals and sanctioned countries. This ultimately led to a record $4 billion fine, the largest fine ever imposed in the crypto sector.
Permanent ban of Changpeng Zhao
One of the most significant implications of the settlement is Zhao’s permanent ban from Binance. The Justice Department said his involvement in failing to comply with regulations and allowing illegal transactions to occur was a significant factor in the sanctions imposed. Zhao will be barred from any future role at the company.
Reforms and Future Plans under Richard Teng
Binance’s new CEO, Richard Teng, emphasized in his interview that this settlement was necessary to regain the trust of regulators and to move forward as a company. Binance will now have to implement strict compliance rules, including the appointment of an independent regulator that will specifically oversee compliance with anti-money laundering and sanctions regulations.
Teng also indicated that under his leadership, Binance will actively work to reposition the company in the increasingly regulated crypto sector. This is essential to regaining the trust of both users and regulators.
The Challenges for Binance in a Changing Regulatory Climate
With Zhao on the sidelines, Binance finds itself at a critical inflection point. The crypto market is becoming increasingly regulated, and the exchange’s ability to adapt to this new reality will determine the company’s future. The question now is whether Binance can recover from the settlement and restore its reputation in the eyes of both customers and regulators.
The coming months will be crucial for Binance as the company attempts to navigate these new challenges while balancing innovation and compliance.
Trade €10,000 for free and get €10 bonus
Want to enter the crypto world and perhaps buy Bitcoin or another crypto? Now is your chance! Thanks to a special deal between Newsbit and Bitvavo, our readers get an exclusive offer.
Create an account at Bitvavo using the button below and receive a welcome gift of 10 euros completely free. And that’s not all – you will also pay no trading fees on your first 10,000 euros in transactions for 7 days after registering your account.* Sign up now!
*Please note that terms and conditions apply to this promotion.
Source: https://newsbit.nl/changpeng-zhao-definitief-verbannen-van-binance-na-schikking-met-amerikaanse-justitie/
