Seattle, USA:Changpeng Zhao, CEO and founder of Binance, the world’s largest cryptocurrency exchange, pleaded guilty to a felony charge of failure to maintain an effective anti-money-laundering program. This follows an investigation by the U.S. government, resulting in Binance agreeing to pay over $4 billion.
Binance, a Cayman Islands limited liability company, faced allegations similar to those uncovered after the collapse of the second-largest cryptocurrency exchange, FTX, last year. Zhao had been accused of diverting customer funds, concealing the commingling of billions of dollars in investor assets, and sending them to a third party owned by Zhao himself.
The guilty plea and settlement come amidst earlier accusations of Binance operating as an unregistered securities exchange and violating U.S. securities laws. The cryptocurrency industry has witnessed various scandals, with this development shedding light on the challenges facing major players.
By AP
