The cryptocurrency exchange Binance has reached a settlement with the Department of Justice (DOJ), agreeing to pay $4.3 billion for anti-money laundering (AML) failures. The settlement, announced on Monday, comes after Changpeng Zhao, the former CEO known as "CZ," pleaded guilty to a felony charge related to the insufficient AML controls at the company.
Zhao has agreed to pay $150 million as part of his share in the settlement and was released on a $175 million recognizance bond. The legal resolution has led to significant leadership changes at Binance, with Richard Teng taking over as the new head of the exchange. Teng is now seeking to engage with the community on social media, despite having a significantly smaller follower base than Zhao's 8.7 million.
In a turn of events today, Zhao's account on social media platform X was temporarily restricted after he changed his profile name to "CZ BNB." He criticized the platform's bot detection algorithm, which led to the suspension of his account, and tagged Elon Musk in his public critique following his resignation from Binance. Zhao humorously addressed the suspension on Binance Square (NYSE:SQ) and offered Thanksgiving greetings to his community.
Despite these challenges, Binance remains a dominant player in the cryptocurrency market with a daily trade volume of $65 billion. Regulatory scrutiny continues as authorities like the SEC have condemned Zhao for allegedly diverting client funds to his companies, and the CFTC has accused both him and Binance of circumventing federal laws and unlawfully operating a digital asset derivatives exchange.
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