CZ resigns from and pleads guilty for violating anti-money laundering restrictions

CZ resigns from and pleads guilty for violating anti-money laundering restrictions
CZ resigns from Binance and pleads guilty for violating anti-money laundering restrictions
Key facts:

Changpeng Zhao pleads guilty to accusations by the United States Department of Justice (DOJ) and resigns from his position as CEO of , the exchange with the largest trading volume on the planet. The decision is part of a $4 billion agreement between the exchange and state entities. The measure would allow the exchange to continue operating, according to those close to the case.

According to a report by The Wall Street Journal, CZ would have pleaded guilty to charges related to failure to comply with anti-money laundering measures presented by the Department of Justice. It is also alleged that CZ operated an unregistered exchange and deceived investors by using a Swiss-based fund owned by the businessman with the aim of inflating trading volume on the US platform Binance.

The United States Commodity Futures Trading Commission (CFTC) joins in, an entity that filed charges against Binance for offering the sale of cryptocurrency derivatives and futures without being properly registered.

The SEC does not participate in the million-dollar agreement, an entity that accused CZ and Binance of 13 charges for violating federal laws in June.

This Tuesday, CZ would give statements before a federal court in Seattle, the report indicates, to present his version of an investigation that began in 2018.

Bloomberg had reported on the possibility of CZ and Binance reaching a $4 billion deal on Monday, which would put an end to the investigation. In the process, Binance would have shared files and messages related to its clients at the end of 2020, according to Reuters.

As CriptoNoticias reported in October, an investor filed a class-action lawsuit against Changpeng Zhao and Binance for attempting to monopolize the markets and acting negatively against other exchanges.

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