Crypto exchange titan Binance experienced a significant outflow of funds, totaling approximately $956 million, following the departure of its CEO Changpeng Zhao. Zhao’s resignation came as part of a plea agreement related to a U.S. investigation into financial misconduct. The settlement includes a hefty $4.3 billion fine to be paid to U.S. regulators.
Richard Teng, a well-regarded executive within Binance, has been appointed to steer the company forward. Despite the leadership change, the extent of Zhao’s continuing influence over the company he founded remains uncertain.
The settlement with U.S. authorities does not signify the end of Binance’s legal challenges, the company still faces allegations from the Securities and Exchange Commission regarding potential violations of securities law. Analyst Robert Le from PitchBook highlighted that the SEC’s ongoing civil lawsuit could lead to additional penalties for the exchange.
Binance, which is known for its vast asset holdings exceeding $65 billion, has been criticized for lax compliance measures in the past, including insufficient reporting of suspicious transactions. Some of these transactions were linked to entities like Hamas, identified by the U.S. as a terrorist organization, and websites associated with child exploitation materials.
In a recent statement, Binance emphasized its commitment to enhancing the security and integrity of its operations. Zhao, acknowledging his past errors, expressed a willingness to accept responsibility for the missteps. However, the company and Zhao’s legal representatives have yet to make further comments following the settlement.
