Changpeng ‘CZ’ Zhao to plead guilty in money laundering case before quitting Binance with $4.3 BILLION fine
The head of the world’s biggest cryptocurrency exchanges will sensationally quit his role after agreeing a $4.3 billion deal with the US Department of Justice.
It is understood Changpeng ‘CZ’ Zhao will plead guilty to money laundering as part of the deal that will end the criminal probe into the company.
He will enter the plea today, and will return to face sentencing either later this year or early 2024. Sources suggest he will resign his role immediately, but intends to maintain majority ownership of Binance.
Full details of the terms from the deal, which ends a two-year investigation, have not yet been made public,
However, it is known that its terms will enable Binance to remain operational in order to avoid a devastating collapse.
Prosecutors began the investigation by asking Binance to provide all its internal records relating to its anti money laundering checks, as well as communications with Zhao.
Shockwaves from news of the fine didn’t take long to hit crypto markets.
Red candles quickly littered trading charts which saw a sudden fall before many arrested the drop. Bitcoin lost only two per cent, as Ethereum slumped four per cent in an hour, while other cryptocurrencies fell between five and nine per cent.
More to follow.