Binance founder and CEO Changpeng Zhao pleads guilty to felony charges Tuesday related to his failure to prevent money laundering on the crypto exchange platform.
King 5 News Seattle
After pleading guilty to federal criminal charges and stepping down from his post as Binance CEO, Changpeng Zhao on Tuesday named Richard Teng as the new CEO of the cryptocurrency exchange Zhao founded.
Teng, a former CEO of Abu Dhabi Global Market, the UAE capital’s financial services regulator, was most recently global head of regional markets at Binance. He was also previously director of corporate finance at the Monetary Authority of Singapore.
In a post on X, Zhao said he “must take responsibility” and that it was “not easy to let go emotionally.” The controversial crypto entrepreneur, who was accused of violating the U.S. Bank Secrecy Act and sanctions, added that he was “proud to point out” U.S. agencies did not allege Binance had misappropriated user funds or engaged in market manipulation.
The remarks are the first public comments Zhao made after he agreed to a plea deal with the U.S. Department of Justice earlier Tuesday.
“I can’t see myself being a CEO driving a startup again,” Zhao said. “I am content being an one-shot (lucky) entrepreneur.”
“Should there be listeners, I may be open to being a coach/mentor to a small number of upcoming entrepreneurs, privately,” he said. “If for nothing else, I can at least tell them what not to do.”
The case against Binance, which was disclosed Tuesday, shows that three criminal charges were brought against the exchange, including conducting an unlicensed money-transmitting business, violating the International Emergency Economic Powers Act, and conspiracy. The exchange has agreed to $4.3 billion in fines and forfeiture.
Zhao personally pleaded guilty to violating and causing a financial institution to violate the Bank Secrecy Act, according to the plea agreement. The Department of Justice is also recommending that the court impose a $50…
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