Binance, the world’s largest crypto exchange, has been having problems with various governments for several years. Things have really spiraled out of control this year with several legal issues affecting policymakers in the US. Fortunately, Binance has now reached an agreement. As a result, Binance CEO Changpeng Zhao (CZ) is reportedly expected to resign.
📈 Do you want to earn Bitcoin? Easy to do from home, no technical knowledge required!
Binance close to agreement?
This morning you could read that the company and the American Ministry of Justice (DoJ), the US Department of Justice to discuss a settlement. Part of this means Binance will have to pay a $4.3 billion penalty. It would be the sixth largest financial settlement in history. According to an overview by macro analyst Alex Krüger on the social media platform X, only a few large investment banks received higher penalties.
The $4.3 billion fine imposed by Binance is the seventh largest financial compliance fine in history pic.twitter.com/CIxx0ZdO6x
— Alex Kruger (@krugermacro) November 21, 2023
The situation began in court when the American Securities and Exchange Commission (SEC) Binance sued. The SEC concluded that Binance was guilty of fraud and market manipulation, among other things, and that Zhao should be personally prosecuted. Additionally, Binance would sell cryptocurrencies to customers as unregistered securities.
Prosecutors would actually consider prosecuting Zhao. The ministry is holding back for the time being as this step could lead to bankruptcy. The prosecutor’s office believes that this does not benefit anyone, especially not consumers.
There is also an ongoing case with the US Commodities Futures Trading Commission (CFTC). This policymaker takes issue with the fact that Binance has not registered its offerings as digital goods with the CFTC.
Will Binance CEO CZ resign?
It seems that the stock market and the government have found a middle ground. Forbes and the Wall Street Journal write, based on their own sources, that Zhao may resign as part of the deal. For now it would be a suggestion, not a final decision.
Also noteworthy is that the settlement would be between Zhao, prosecutors and the CFTC. The SEC would not be part of this settlement, meaning the case between the SEC, Binance and CZ could continue. So far, none of those involved have responded.