In a sweeping resolution with the U.S. Department of Justice (DOJ), cryptocurrency exchange Binance has agreed to delist trading pairs and prepare for a full withdrawal from the United States market. This decision, which came to light on Tuesday, involves a substantial penalty of $4.3 billion. Adding to the company's woes, Changpeng Zhao (CZ), the CEO of Binance, has stepped down from his management role as part of his guilty plea on charges of operating without a license and conspiracy.
CZ is facing an individual fine of $50 million and could serve up to 18 months in prison, with sentencing scheduled for February 23, although there is a possibility of postponement. Despite relinquishing his management duties, CZ retains his ownership stake in the company. As he departs from his role at Binance, CZ expressed his desire to move past this challenging period.
To ensure future compliance, a five-year watchdog will oversee the company's operations, and the Treasury will have full access to Binance's data. The legal settlement marks a significant shift in the regulatory landscape for cryptocurrency exchanges operating within the U.S. and may have far-reaching implications for the industry.
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