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CZ Resigns as Binance CEO - Faces Jail
4 Billion Dollar DOJ Settlement
Mills Mills
November 22, 2023
Busy week for the Securities and Exchange Commission (S.E.C.)!
Fresh on the heels of suing Kraken for operating illegally as a securities exchange, now Binance will no longer be run by founder CZ.
BREAKING: 🇺🇸 SEC has charged Kraken for operating as an unregistered securities exchange in offering 16 crypto securities such as Solana, Cardano & Algorand.
— Bitcoin Archive (@BTC_Archive)
10:47 PM • Nov 20, 2023
Binance is currently the world’s largest global cryptocurrency exchange and has reached a settlement with the DOJ agreeing to pay 4.3 billion USD in fines and continue operating.
CZ, the founder and CEO of Binance plead guilty to federal money laundering and has stepped down from his role of leadership at Binance. He will remain the main owner and pay a $50 million dollar fine.
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BREAKING: Binance founder CZ pleads guilty and agrees to resign as CEO in deal with DOJ — WSJ
— Bitcoin Archive (@BTC_Archive)
5:38 PM • Nov 21, 2023
On his X/Twitter account CZ introduced his successor CEO and highlighted that there were no allegations that Binance misappropriated user funds or engaged in market manipulation (referring to FTX).
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is… twitter.com/i/web/status/1…
— CZ 🔶 Binance (@cz_binance)
8:36 PM • Nov 21, 2023
It’s not over yet for CZ.
He still faces sentencing in court, and part of the deal with prosecutors was waiving his right of appeal if the sentence included jail time less than 18 months.
According to @cstrohm, @allyversprille and other @business colleagues of mine. CZ could still technically do prison time of up to 18 months?!? Which I didn't realize but maybe I'm living under a rock?
Either way, that's likely to be a hell of a lot less than SBF
h/t @dunleavy89— James Seyffart (@JSeyff)
10:26 PM • Nov 21, 2023
CZ could still serve time in jail, though it’s unlikely to be anything like the very long sentence awaiting his FTX nemesis, Sam Bankman-Fried.
The difference is mainly attributed to SBF literally stealing customer funds, while CZ’s main transgression in the deal he has agreed to plead guilty to was money laundering to break US sanctions.
From FTX, Coinbase, Kraken, Binance, Genesis, Gemini… there is clearly a strong show of cracking down on any lack of compliance with regulations by the SEC.
Interesting timing as the SEC is also moving full speed ahead in favor of a spot Bitcoin ETF. Clearing the decks for wall street friends? ETF approval imminent?
JUST IN: 🇺🇸 SEC Commissioner Hester Peirce: There is no reason for the SEC to stand in the way of a spot #Bitcoin ETF. 🤝
It's coming...
— Bitcoin Archive (@BTC_Archive)
8:48 PM • Nov 21, 2023
While unearthing some illicit activity, these court cases also draw negative attention and seemingly continue to contribute to the narrative that bitcoin is volatile and used for ill.
But truly - bad actors getting ousted is a great service for the bitcoin community.
xoxo,
Mills