Binance’s CZ to plead guilty to violating anti-counterfeiting requirements – WSJ
Binance founder Changpeng “CZ” Zhao has reportedly agreed to step down as CEO of the crypto exchange as the United States Department of Justice (DOJ) prepares to announce a $4.3 billion settlement with the company.
According to The Wall Street Journal, CZ plans to plead guilty to several charges filed by the DOJ. He appeared in federal court in Seattle on November 21 and reported the plea to the Journal. The report also indicated that he was guilty of “criminal charges” related to the violation of anti-money laundering laws.
Although the agreement allows CZ to retain a majority stake in Binance, which means he will not face jail time as part of the plea deal, he is not allowed to hold an executive position at the company.
The Wall Street Journal also reports that this plea agreement will not affect pending litigation with the US Securities and Exchange Commission, as it does not include a settlement of the case brought against Binance in June.
Related: Binance.US Seeks Protective Order From SEC ‘Fishing Trip'
However, the DOJ settlement resolves the company's issues with the Commodity Futures Trading Commission, as the $4.3 billion settlement includes funds applied to the CFTC case and major claims against the company from the US Treasury Department.
Today I step down as the CEO of Binance. It wasn't easy to let go emotionally. But I know it's the right thing to do. I made a mistake, and I have to take responsibility. This is great for the community, Binance and myself.
Binance is no longer a baby. is it…
— CZ Binance (@cz_binance) November 21, 2023
Crypto social media exploded with activity as news of the CZ plea deal filtered through the ranks.
Former pharmaceutical mogul and media mogul Martin Shkreli, who served a four-year sentence for fraud and spent seven years in prison, joked that he had “put in a good word” for CZ, although it was unlikely. The former Binance CEO faces prison time as part of his plea deal.
Here we go again.
— Martin Shkreli (@wagieeacc) November 21, 2023
Neither Binance nor the US Department of Justice immediately responded to requests for comment.
Update Nov 21, 10:22 PST: The author of this article mistakenly originated the title “Pharma Bro” by Martin Shkreli. It has been suggested that this title was given to him by the media and the article changed to reflect this.
This is a developing story, and more information will be added as it becomes available.
