Binance CEO CZ To Resign, Admit Guilt In Anti-Money Laundering Probe: Report

Binance (CRYPTO: BNB) CEO, Changpeng Zhao is reportedly set to resign and admit guilt Tuesday to U.S. criminal charges related to anti-money laundering violations.

What Happened: This move is part of an agreement potentially safeguarding the company's operational future, according to sources close to the situation, The Wall Street Journal reported.

Zhao is expected to formally submit his guilty plea in a federal court in Seattle on Tuesday afternoon, the report said. 

Alongside Zhao's plea, Binance, which he owns, is also poised to acknowledge criminal misconduct.

The company has agreed to a substantial financial penalty amounting to $4.3 billion.

This sum includes fines to resolve both criminal charges and civil claims raised by regulatory authorities.

This arrangement aims to conclude prolonged inquiries into Binance's operations.

Why It's Important: The company has been under the cloud of a criminal investigation, a situation that persisted even as it gained market share following the downfall of FTX, a key offshore rival, last year.

Binance has faced internal challenges recently, with key executives departing and significant workforce reductions as it navigated through the complexities of U.S. investigations.

Under the terms of the deal, Zhao will reportedly maintain his majority stake in Binance but will relinquish any executive role within the company. His sentencing will be scheduled for a later date.

What's Next: Attorney General Merrick Garland of the United States is scheduled to conduct a press briefing at 3 p.m. ET Tuesday where he will unveil "distinct yet interconnected actions pertaining to cryptocurrency enforcement," as per an official release from the Department of Justice.

The briefing is set to disclose a settlement agreement with the cryptocurrency exchange Binance, based on information from two individuals who are in the know, according to Bloomberg Law. 

Since at least December 2022, the Justice Department has been probing Binance and its top executives.

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