Saturday, December 14, 2024
HomeNewsElsewhereBinance loses nearly $1 billion in 24 hours as CEO steps down, pleading guilty in US financial probe

Binance loses nearly $1 billion in 24 hours as CEO steps down, pleading guilty in US financial probe

Investors in cryptocurrency exchange giant Binance have pulled out nearly $1 billion from the platform within just the past day, after the group’s founder and CEO Zhao Changpeng stepped down and pleaded guilty as part of a financial probe by US authorities.

The United States Securities and Exchange Commission (SEC) alleges that Binance – the world’s largest crypto exchange – broke the nation’s securities laws, and while Binance has agreed to a settlement worth some $4.3 billion, there is still an ongoing civil suit with the SEC.

Reports indicate that Binance failed to report some 100,000 suspicious transactions, which US authorities believe could be linked to foreign terrorist groups such as Hamas and IS and other suspected illegal operations. The claim Binance was aware of criminal use of the platform but attempted to downplay possible AML violations to authorities.

It’s unclear yet whether Zhao will have to serve jail time, but he noted on Tuesday that he had “made mistakes and I must take responsibility”.

Zhao faces a sentencing hearing in the United States on February 23rd, having agreed to return to the United States two weeks before sentencing. He was released on a $175 million bail, with a further $15 million held in trust. This comes despite prosecutors claiming Zhao posed a flight risk and pushing for him to remain in the country.Zhao currently resides in the UAE.

The cryptocurrency exchange founder has been banned from future managerial or operational roles within the future, however he remains a major shareholder in the company. His role as CEO has been taken over by former executive at the Monetary Authority of Singapore (MAS) Richard Teng.

Richard Teng, Binance CEO
Richard Teng, new CEO of Binance

Teng served 13 years at the MAS, as well as holding roles as a chief regulatory officer at the Singapore Stock Exchange (SGX). Prior to being onboarded by Binance, he worked as the CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market.

He was hired as CEO of Binance Singapore in August of 2021 and was appointed as head of regional markets in May of this year.

AGBrief Editorial
AGBrief Editorialhttps://agbrief.com/about-asia-gaming-brief/
The AGBrief Editorial Team is a group of contributors living around the world that are connected to Asia Gaming Brief. They are active members in pursuing the sources of our news, making them reliable and accurate for our readers.

MORE ARTICLES

FOLLOW US

daily newsletter