The CEO of Binance, the world’s largest cryptocurrency exchange, will step down after the company pleaded guilty Tuesday to violations of the Bank Secrecy Act, an anti-money laundering law, among other charges.
The company will pay more than $4.3 billion to settle the charges, the largest penalty in the history of the Treasury Department.
The Justice Department said in a news release that Changpeng Zhao also pleaded guilty to failing to maintain an effective anti-money laundering program and would step down as chief executive.
Zhao also agreed to a $50 million fine as part of the settlement.
Zhao confirmed his departure from the chief executive role in a post on X, in which he acknowledged that he made mistakes. He also said Richard Teng, Binance’s head of regional markets, would take over as CEO.
Zhao said he would remain a shareholder of the company and be able to consult with its leadership. He also stressed that there were no allegations related to the misuse of customer funds or market manipulation.
In a statement Tuesday, the Treasury Department said that Binance “willfully failed to report” more than 100,000 suspicious transactions.
According to the Justice Department’s release, Binance’s compliance employees internally noted that the company didn’t even have protocols to flag transactions that were money laundering risks.
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