Binance, the giant of the cryptocurrency world, is witnessing a shocking development. CEO Changpeng Zhao’s admission of money laundering charges and decision to resign caused fluctuations in the crypto markets. According to Reuters, Zhao, who accepted the accusations in the legal processes in the USA, is expected to make a deal. However, this situation raises many questions about the future of Binance and how it will affect the cryptocurrency market.
According to Reuters, Changpeng announced that Zhao would confess to violating the laws in the United States and would reach an agreement.
Another source said that Zhao will pay a fine of over $4 billion in exchange for the agreement he made with the prosecutor’s office.
Changpeng Zhao is expected to appear in federal court in Seattle and enter his defense.
Fines of over 4 billion dollars
US regulatory authorities filed a lawsuit against cryptocurrency exchange Binance and its CEO Changpeng Zhao, alleging that they operated a “web of lies”.
The US capital markets regulatory authority, the SEC, made 13 accusations against Binance, Zhao and the US cryptocurrency exchange in its complaint file filed with the federal court in Washington.
The SEC had said that Binance created artificial trading volume, used customers’ money without permission, and failed to prevent US citizens from using the platform.
Last night, it was reported that Binance was requested to pay a penalty of over 4 billion dollars to end the ongoing investigations and lawsuits in the USA.