In the wake of ongoing crackdown by US regulatory agencies and investigations conducted by the Department of Justice (DOJ), Binance CEO Changpeng Zhao (CZ) is reportedly considering stepping down as Chair of the world’s largest cryptocurrency exchange.
According to Forbes, as part of a potential $4 billion settlement between Binance and the DOJ, CZ’s departure is expected to be a key component.
Binance CEO May Resign As Part Of DOJ Settlement
Per the report, an unnamed source familiar with the situation revealed that CZ may step down from his role at Binance as part of a significant settlement reached with the DOJ.
The source indicated that the settlement would also involve the Commodities Futures Trading Commission (CFTC), while the Securities and Exchange Commission (SEC) would not be participating in the resolution.
Reinforcing the information, Reuters reported that US government authorities are expected to announce a settlement with Binance Holdings to resolve a long-running investigation into the world’s largest cryptocurrency exchange.
The deal, which would address alleged violations of the Bank Secrecy Act and other US laws, encompasses the Justice Department, the CFTC, and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
Pivotal Moment In Cryptocurrency Regulatory Clash
Binance has been under the scrutiny of the Justice Department since at least 2018, facing a series of legal and regulatory challenges in the United States.
In December 2020, federal prosecutors requested internal records from the company concerning its anti-money laundering measures and communications involving CEO and founder Changpeng Zhao.
Overall, the potential departure of Binance CEO CZ as part of a $4 billion settlement with US authorities marks a significant development in the ongoing investigations and regulatory actions faced by the world’s largest cryptocurrency exchange.
As reports from Forbes and Reuters indicate, the settlement involving the DOJ, CFTC, and FinCEN aims to address alleged violations of US laws and anti-money laundering efforts.
The exact details of the settlement and CZ’s departure are yet to be officially confirmed, but the outcome could have far-reaching implications for Binance and the broader cryptocurrency industry.
Featured image from the WSJ, chart from TradingView.com