CZ Steps Down as Binance CEO in $4.3B Settlement

As the United States Department of Justice (DOJ) awaits the announcement of a $4.3 billion settlement with the company, Binance founder Changpeng “CZ” Zhao reportedly consented to step down as CEO of his cryptocurrency exchange.

The Wall Street Journal reports that CZ is prepared to enter a guilty plea to multiple offenses brought against it by the DOJ.

According to the Journal, he is expected to submit his plea during his November 21 appearance in a federal court in Seattle.

According to the report, he will also enter a guilty plea to “a criminal charge” about the violation of anti-money laundering statutes.

While the agreement would enable CZ to maintain his majority ownership in Binance, suggesting that incarceration is improbable as a condition of the plea bargain, he will be prohibited from holding an executive position at the organization.

Additionally, the Wall Street Journal reported that this plea agreement will not have an impact on ongoing legal proceedings with the U.S. Securities and Exchange Commission because it does not include a resolution to the complaint the agency filed against Binance in June.

However, the company’s disputes with the Commodity Futures Trading Commission will be resolved through the DOJ settlement, as the CFTC’s case and unresolved claims from the U.S. Treasury Department are included in the reportedly $4.3 billion settlement.

Activity on the cryptocurrency social network has skyrocketed since word of CZ’s plea bargain spread through the ranks.

Although most originate from former pharmaceutical magnate and self-proclaimed “Pharma Bro,” Martin Shkreli, who served four years of a seven-year fraud sentence, reportedly joked that he would “put in a good word” for CZ.

However, it is improbable that the former CEO of Binance will be required to serve time in prison as part of his plea agreement.