Who is Changpeng Zhao, ex-Binance CEO who quit after pleading guilty to money laundering violations

Founder and CEO of Binance, Changpeng Zhao has stepped down from his position after pleading guilty to violating US anti-money laundering laws. The most influential figure in the crypto industry Zhao will pay a $50 million fine and end his journey with the world’s largest cryptocurrency exchange, Binance.

As part of the settlement, Zhao is not allowed to take on a management role in the company for the next three years, as per reports.

The announcement was made by Zhao himself on X on Wednesday, in which he admitted his “mistakes” and introduced the new CEO of Binance, Richard Teng. Teng is the former Global Head of Regional Markets at Binance, who will now lead the company.

This came as a stunning blow to the crypto world where Zhao was the most powerful person.

Who is Changpeng Zhao, ex-CEO of Binance?

Changpeng Zhao, better known as CZ, is a Chinese-born Canadian businessman and investor. He immigrated with his family to British Columbia when he was 12. Zhao graduated from McGill University in Quebec with a major in Computer Science.

He worked in his first full-time job at Bloomberg Tradebook for four years as a developer of futures trading software. He became involved in the crypto industry in 2013, working on various projects related to blockchain and cryptocurrency.

In July 2017, Changpeng Zhao founded Binance, a cryptocurrency exchange that quickly gained popularity for its user-friendly interface and low trading fees.

Despite the success of Binance, it was overshadowed by the heap of regulatory challenges in various countries. This eventually prompted Zhao to adapt the business to comply with different jurisdictions' requirements.

"Binance made it easy for criminals to move their stolen funds and illicit proceeds on its exchanges," USAttorney General Merrick Garland said on Tuesday.

What’s next for Binance and Zhao?

The company has also agreed to plead guilty and will pay $4.3 billion in fines and restitution, and accept the appointment of a monitor, as per the court documents.

The Justice Department of the US is seeking an 18-month prison sentence for Zhao, the maximum suggested under federal guidelines, the New York Times reported.

(With inputs from agencies)