FTX

Binance chaos: CZ resigns, the company will pay 4.3 billion in fines

Changpeng Zhao, better known as CZ (his pseudonym on X) and CEO of Binance, plans to resign and plead guilty to violating US criminal anti-money laundering requirements.
The decision is part of a deal that could preserve the company's ability to continue operating in the US, according to initial reports.
A "revenge" after the FTX case? CZ, a Canadian born in China and of Chinese ethnicity, had been the main accuser in the FTX case, generating a series of events that led to the collapse of the competitor and the arrest of CEO Samuel Bankman Fried.
At the time CZ supported his gesture as a necessary action for the credibility of the entire crypto market, on the other hand many institutions and important people in the USA have lost huge sums and suffered image damage from the scandal.
Bankman Fried was one of the main donors to Joe Biden's election campaign, and apparently also supported the Republicans with large donations.
$4.3 billion fine Returning to the Binance matter, Changpeng Zhao is expected to appear in federal court in Seattle on Tuesday afternoon to plead guilty.
Binance, which Zhao owns, will also plead guilty to a criminal charge and agree to pay fines totaling $4.3 billion, which also includes amounts to settle civil charges brought by regulators.
Bitcoin Reaction Bitcoin, meanwhile, loses less than 2% of its valuation after the sharp rises in recent weeks, while still losing $37,000.
An overall limited reaction compared to the scope of the news, on the other hand it is not excluded that the affair could bring further consequences on the cryptocurrency market with the release of further details on the affair.

Author: A.W.M.

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