Binance CEO admits to involvement in money laundering

Changpeng Zhao, the CEO of Binance, has resigned from his position after admitting to money laundering charges. In a statement on social media platform X, Zhao expressed remorse for his mistakes and emphasized the importance of taking responsibility. The US Justice Department has imposed a penalty of $4.3 billion on Binance, the largest cryptocurrency exchange in the world, for its involvement in enabling users to bypass international sanctions. The spokesperson for the Justice Department stated that Binance facilitated transactions worth nearly $900 million between US and Iranian users, as well as facilitating transactions worth millions of dollars involving US users and individuals in Syria, Crimea, Donetsk, and Luhansk. Binance, which is based in the Cayman Islands, has gained a reputation as a leading platform for trading digital assets. However, it has faced legal challenges from US regulators, who attempted to ban the exchange for allegedly operating unlawfully in the country. The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, accusing it of violating various US financial laws, including those aimed at combating money laundering. Binance defended its practices, claiming to have implemented significant measures to prevent the participation of US users on its platform. Nevertheless, the company faced further legal trouble when the Securities and Exchange Commission (SEC) accused it of deceptive practices that disregarded investor protection regulations in order to continue operating in the US. Binance vowed to vigorously defend itself against these allegations. US authorities have been committed to using existing laws to address fraud and other issues within the cryptocurrency industry, particularly following the collapse of Binance's competitor, FTX, last year. Earlier this month, FTX founder Sam Bankman-Fried was found guilty of fraud.