Changpeng Zhao, also known as CZ, has resigned as the founder of Binance, one of the largest cryptocurrency exchanges globally, following a money laundering investigation. Zhao, a Chinese-Canadian businessman, initially worked in the finance industry, holding positions at companies like Bloomberg Tradebook and Fusion Systems.
Binance was launched by Zhao in July 2017, raising $15 million through an initial coin offering. The exchange quickly gained popularity due to its advanced features and ambitious growth plans. It soon became one of the most prominent and significant cryptocurrency exchanges worldwide.
In 2022, Binance accounted for over two-thirds of the total volume handled by centralized cryptocurrency exchanges, facilitating spot trades worth $5.3 trillion. However, both Zhao and Binance faced regulatory scrutiny and investigations in Europe, Asia, and the United States, concerning concerns about money laundering and wire fraud.
Recently, Zhao pleaded guilty to the violations and stepped down from his position. The Justice Department reached a settlement with Binance and other U.S. agencies, resolving criminal charges related to conducting an unlicensed money transmitter business, conspiracy, and breaching sanctions regulations.
Despite his resignation, Zhao will maintain a majority stake in Binance and will serve as a resource for consultation on the company’s history. Richard Teng, an executive at Binance, will succeed Zhao as the new CEO, according to Forbes.
