Binance' CZ Steps Down as CEO, Pays $175M in Legal Settlement with DOJ

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Published: November 22, 2023 at 12:34 am Updated: November 22, 2023 at 12:34 am

Edited and fact-checked:
November 22, 2023 at 12:34 am

In Brief

Changpeng ‘CZ’ Zhao resigns as Binance CEO amid a $4.3 billion legal settlement with the DOJ, and Richard Teng is appointed as the new CEO.

Changpeng ‘CZ’ Zhao, the CEO of Binance, has stepped down from his position amidst a major legal settlement with the U.S. Department of Justice (DOJ).

Zhao’s departure comes after Binance agreed to pay a hefty $4.3 billion to resolve a criminal investigation related to money laundering.

Zhao, who will retain majority ownership of Binance, plans to shift his focus to passive investing in blockchain, Web3, DeFi, AI, and biotech startups.

His decision follows his scheduled court appearance in Seattle and is part of concluding the prolonged U.S. regulatory investigations into Binance. Under scrutiny since 2018, Binance faced allegations of money laundering involving Zhao.

Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.

Binance is no longer a baby. It is…

— CZ Binance (@cz_binance) November 21, 2023

Richard Teng, the New Face after CZ

Richard Teng, formerly Binance’s Global Head of Regional Markets, has been appointed as the new CEO. Teng, with over three decades of experience in financial services and regulation, is poised to lead Binance into its next phase of growth, focusing on security, transparency, compliance, and expansion.

His past roles include serving as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market. He was also the Chief Regulatory Officer of the Singapore Exchange.

Although stepping down as CEO, CZ will continue to be available for consultation, adhering to the framework of the U.S. agency resolutions. He plans to take a break after six and a half years of relentless work at Binance.

JUST IN: CZ #Binance has just been released on a $175,000,000 bond, one of the largest bail amounts in history. pic.twitter.com/Oo7HbyN35K

— WhaleWire (@WhaleWire) November 21, 2023

Implications for Binance and Crypto Market

Zhao’s departure and the legal settlement mark a turning point for Binance. The resolution with the U.S. agencies does not allege any misappropriation of user funds by Binance. It also does not claim any market manipulation, affirming the security of user funds.

This leadership change could signify a new direction for Binance as it navigates complex regulatory landscapes.

CZ celebrates this transition, highlighting the importance of the new leadership. He expresses confidence in the future of Binance and the broader crypto industry under Teng’s stewardship. He invites the community to support Teng in his new role.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti