“Binance Will Be Fine”, CZ Pens Final Note to Staff as CEO

• Changpeng “CZ” Zhao has released a statement following the DOJ’s announcement.
• The former Binance CEO is facing several criminal charges.
• The exchange is undergoing a transition to new leadership with the election of a new CEO.

The cryptocurrency industry has been abuzz with the details of the DOJ-Binance crackdown, which has marked one of the most controversial legal cases in crypto history. On Tuesday, November 21, the U.S. Department of Justice (DOJ) held a press conference, unveiling criminal charges against the exchange, its US subsidiary, and its founder, Changpeng “CZ” Zhao.

Following the announcement, the lingering question of “what comes next” for the crypto exchange and its indicted CEO has persisted among investors and industry enthusiasts. Now, in an official statement, the Binance founder has addressed the debacle.

CZ Speaks On What’s Next For Him And Binance

In an internal letter on November 22, now-former CEO CZ addressed the Binance team, confirming his resignation and the indictment from the Justice Department.

Zhao, who recently pleaded guilty to the violation of U.S. anti-money laundering laws, acknowledged the current challenging phase of the exchange, encouraging the team to “continue performing admirably.”

He further encouraged the staff to support the transition of Richard Teng, who was announced as the interim Chief Executive Officer following CZ’s resignation.

While Zhao did not explicitly address the charges leveled against him in his statement, he still faces several criminal charges from the U.S. Department of Justice. 

DOJ-Binance Criminal Crackdown

The year 2023 has been a tumultuous one for Binance and its CEO, marked by a string of legal battles with regulators including the United States Securities and Exchange Commission (SEC) , and the Commodity Futures Trading Commission (CTFC) .

However, the challenges pale in comparison to the debacle that unfolded in the last 24 hours, following the resignation of the former CEO and his guilty plea to the list of criminal charges unveiled by the DOJ, after a year-long investigation.

The Department of Justice alleged that Binance, under the direction of Changpeng “CZ” Zhao, operated an unregistered money transmitter business, and facilitated illegal transactions for sanctioned entities.

Going further, the prosecutors asserted that the exchange knowingly allowed the laundering of stolen funds on its platform by malicious actors and terrorist organizations , including Hamas, Al-Qaeda, and ISIS.

Both Binance and CZ pleaded guilty to the crimes. Consequently, the DOJ indicted Zhao, demanding his resignation as CEO and mandating the exchange’s complete exit from the United States. 

The former CEO is also expected to pay a staggering $4.3 billion as part of a settlement deal with the DOJ.

On the Flipside

• The indictment of Changpeng “CZ” Zhao has stirred up claims of oppression within the cryptocurrency community, with investors asserting that it is driven by the U.S.’ bid to control the growing industry.
• The former CEO may face jail time; however, his guilty plea grants him the right to appeal any sentence over 18 months.
• Binance’s BNB is currently experiencing a substantial price decline, plummeting 15% within a 24-hour period.

Why This Matters

Changpeng “CZ ” Zhao’s final bid to his team marks the end of his six-year reign as the exchange’s CEO, highlighting the potential consequences of non-compliance within an industry facing tightening regulatory oversight.

Discover more on the criminal charges leveled against Binance and Changpeng “CZ” Zhao:
DOJ Charges Binance, Mandates Binance Exit, CZ Pleads Guilty  

To dive deeper into the Binance-DOJ debacle and its market implications, read here:
Here’s What Binance’s $4B Settlement and CZ’s Resignation Means