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'Legend in my book': Internet lauds Binance CEO Changpeng Zhao as he steps down to save crypto firm's future

Changpeng Zhao stepped down amid a substantial $4 billion settlement with US regulatory agencies over anti-money laundering violations

SAN FRANCISCO, CALIFORNIA: Changpeng 'CZ' Zhao's decision to step down as the CEO of Binance has sent shockwaves through the cryptocurrency community.

The move comes as part of a monumental $4 billion settlement between various United States regulatory agencies and the exchange he founded, as per Forbes.

Changpeng Zhao takes accountability for Binance's shortcomings

In a candid announcement made on social media platform X (formerly Twitter), Zhao took accountability for the company's shortcomings. 

"I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself," he stated.

This acknowledgment followed lengthy investigations by the Department of Justice and other regulatory bodies into anti-money laundering violations and sanctions breaches.

Binance, in a corresponding press release, admitted to lacking appropriate compliance controls during its initial launch, expressing regret for not evolving its mechanisms in line with its rapid growth.

While Zhao's departure as CEO signifies a significant shift, he will retain his role as the majority shareholder and act as a consultant for the exchange, focusing on historical aspects of the business.

Treasury Secretary Janet Yellen says Binance's negligence facilitated fund transfers to terrorist groups

The settlement encompasses multiple facets, with Zhao appearing in a federal court in Seattle to plead guilty to anti-money laundering and sanctions infractions.

As part of the resolution, Binance reached agreements with the Department of Justice, Commodities Futures Trading Commission, Financial Crimes Enforcement Network (FinCEN), and Office of Foreign Assets Control (OFAC).

This landmark deal grants the Treasury Department access to Binance's records under a five-year monitorship.

US Attorney General Merrick Garland emphasized during a press conference the gravity of the violations committed, noting that Binance's payment of one of the most substantial corporate penalties in US history is a direct consequence of the crimes committed.

Treasury Secretary Janet Yellen condemned Binance for its disregard of anti-money laundering laws, alleging that its negligence facilitated fund transfers to terrorist groups like Al Qaeda and ISIS.

The resolution includes a $3.4 billion penalty to FinCEN and $968 million to OFAC, accompanied by stringent compliance mandates.

Internet unites in support of Changpeng Zhao's sacrifice for Binance's greater good

Coinbase CEO Brian Armstrong, a prominent competitor of Binance in the US, hailed the development as an opportunity for the industry to embark on a new, more regulated chapter.

In his statement, Armstrong expressed hope that this action against Binance would prompt regulatory clarity, echoing the sentiment of many in the industry seeking more transparent practices.

Across the internet, voices resonate in support of Zhao's sacrifice for Binance's greater good. "CZ falling on the sword to protect Binance’s global operations is a net good for crypto," remarked one user on X.

Another user expressed gratitude, stating, "Sacrificial lamb. Thanks for helping millions of people get into crypto CZ! Best of luck with your next venture."

A third individual commented, "Wow they really did CZ like that huh. Legend in my book."

Echoing sentiments of admiration, one social media user asserted, "The hero we need, not the one we deserve."

Summing up the sentiments succinctly, another user wrote, "What a hero."