1700587098 Binance CEO CZ Talks Resigning After Completion of Criminal Investigation

Binance CEO CZ Talks Resigning After Completion of Criminal Investigation – Forbes

Binance Founder and CEO Changpeng Zhao, commonly known as “CZ,” is attending the “CZ

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Binance CEO Changpeng Zhao could resign as part of a major $4 billion settlement between the Justice Department and Binance, the world’s largest cryptocurrency exchange, according to a source familiar with the matter. The settlement is with the DOJ and the Commodities Futures Trading Commission; the Securities and Exchange Commission does not participate.

Binance, the DOJ, the CFTC and the SEC had not responded to requests for comment at the time of publication.

The SEC accused Binance and its founder CZ in June of operating an unregistered exchange and misleading investors by using the Swiss-based fund Sigma Chain, also owned by CZ, to increase trading volume on Binance’s US platform to increase. “Through thirteen counts, we allege that Zhao and Binance Companies engaged in an extensive web of deception, conflicts of interest, failure to disclose, and deliberate evasion of the law,” SEC Chairman Gary Gensler said in June.

The SEC lawsuit followed allegations from the CFTC, which also alleged that the company offered crypto derivatives such as futures or options contracts to U.S. residents without registering as a futures commodities trader.

Bloomberg reported on Monday that Binance was ready to agree to a $4 billion settlement with the Justice Department. The deal would mark the end of a Justice Department investigation into crypto exchanges that began at least in 2018. Portal reported that federal prosecutors asked Binance in late 2020 to hand over files and messages related to its US customers.

Last September, Binance announced the formation of a global advisory board led by former US Senator and Ambassador to China Max Baucus. Other members include David Plouffe, former campaign manager for President Barack Obama, and Bruno Bézard, former head of the French Finance Ministry.

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Additional reporting by Steve Ehrlich, Sarah Emerson and Iain Martin.

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