DOJ Announces $4.3 Billion Settlement With Binance As CZ Resigns From Company

The U.S. Department of Justice has settled charges against crypto exchange giant Binance for $4.3 billion, bringing investigations spanning back to 2018 to a close.

• The DOJ confirmed the settlement in a live video announcement on Tuesday, marking one of the largest enforcement actions ever closed in a crypto-related case.
• The company pled guilty to willfully floundering the Bank Secrecy Act, among other things.
• It now must report suspicious financial activity to federal authorities.
• Meanwhile, Binance founder Changpeng Zhao (CZ) has pled guilty to failing to implement a strong anti-money laundering (AML) program on the platform. He entered his plea in person, in a U.S. District court earlier today.
• He will personally pay a $50 million fine, and has stepped down as the exchange’s CEO.
  Following the announcement, the price of BNB fell from $253 at the start of the day to $242.
• CZ confirmed that he had stepped down on Tuesday through an X post, admitting that he’d “made mistakes, and I must take responsibility.”
• Binance’s former Global Head of Regional Markets, Richard Teng, will be the firm’s new CEO.

• “I can’t see myself being a CEO driving a startup again,” wrote CZ. “I am content being a one-shot (lucky) entrepreneur.”