According to a Wall Street Journal (WSJ) report, Changpeng Zhao, CZ, plans to plead guilty to violating U.S. Anti-Money Laundering requirements and step down as the CEO of the Binance exchange.
As the United States Department of Justice (DOJ) awaits the announcement of a $4.3 billion settlement with the company, Binance founder Changpeng “CZ” Zhao reportedly consented to step down as CEO of his cryptocurrency exchange.
The Wall Street Journal reports that CZ is prepared to enter a guilty plea to multiple offenses brought against it by the DOJ. According to the Journal, he is present in a Seattle federal court on November 21 to submit his plea.
According to the report, he will also enter a guilty plea to “a criminal charge” for violating anti-money laundering statutes.
While the plea bargain may enable CZ to maintain his majority ownership in Binance, thereby reducing the likelihood of incarceration, it also prohibits him from occupying an executive position at the organization.
Furthermore, as it does not incorporate a settlement for the case it initiated against Binance in June, the Wall Street Journal reported that this plea agreement will not impact pending litigation with the U.S. Securities and Exchange Commission.
However, the company’s disputes with the Commodity Futures Trading Commission will be resolved through the DOJ settlement, as the CFTC’s case and unresolved claims from the U.S. Treasury Department are included in the reportedly $4.3 billion settlement.
Activity on cryptocurrency-related social media platforms has skyrocketed since word of CZ’s plea bargain spread through the ranks.
Former pharmaceutical magnate and media-branded “Pharma Bro” Martin Shkreli, who served four years of a seven-year sentence on fraud charges, reportedly joked that he would “put in a good word” for CZ. However, as part of his plea agreement, it is unlikely that the former Binance CEO will serve time in prison.
