Binance CEO Changpeng Zhao is reportedly considering stepping down from his role as part of a substantial $4 billion settlement between the Department of Justice (DOJ) and the world’s largest cryptocurrency exchange, according to an insider source. The settlement, set to be finalized with both the DOJ and the Commodities Futures Trading Commission (CFTC), excludes the Securities and Exchange Commission (SEC) from participation.
As of the time of this publication, Binance, the DOJ, CFTC, and SEC have not responded to requests for comments.
Binance CEO
In June, the SEC charged Binance and its founder, CZ, accusing them of running an unregistered exchange and deceiving investors. The charges included allegations of using a Switzerland-based fund called Sigma Chain, owned by CZ, to artificially boost trading volume on Binance’s U.S. platform. SEC Chair Gary Gensler stated in June that the charges involved an intricate network of deception, conflicts of interest, lack of disclosure, and intentional evasion of the law.
The CFTC also filed charges against Binance, asserting that the company provided crypto derivatives to U.S. citizens without registering as a futures commodity merchant.
Reports from Bloomberg on Monday suggested that Binance was on the verge of agreeing to a $4 billion settlement with the Justice Department, marking the conclusion of a DOJ investigation into the crypto exchange that began as early as 2018. Federal prosecutors had reportedly requested files and messages related to Binance’s U.S. customers in late 2020, as per Reuters.
In September of the previous year, Binance had announced the establishment of a Global Advisory Board, with former U.S. Senator and Ambassador to China Max Baucus leading the board. Other notable members included David Plouffe, former campaign manager for President Barack Obama, and Bruno Bézard, former head of the French Treasury.
The situation is still developing, and updates will be provided as they become available.
