Changpeng Zhao, the founder of the cryptocurrency exchange Binance, announced his resignation yesterday evening. This development comes after Binance accepted the US Department of Justice's $4.3 billion fine and the charges against Zhao.
Two days before the announcement, Zhao, also known as “CZ,” posted a cryptic tweet that now appears prophetic. Regarding Sam Altman's situation at OpenAI, Zhao commented, “Knowing when to give up control of a company you founded is one of the most difficult decisions.”
Zhao agreed to plead guilty to charges of failing to comply with US anti-money laundering regulations. He will pay a $50 million penalty as part of the agreement. Binance itself will also plead guilty and pay a total fine of $4.3 billion.
However, as part of CZ's agreement with the government, Binance will be allowed to continue operations once the fines are paid and Zhao resigns. Zhao will not be an executive at Binance for three years. Zhao announced that he had no intention of returning to the company again.
In his statement, Zhao announced that he would now make passive investments and hold minority tokens in startups in the fields of blockchain/Web3/DeFi, AI and biotechnology.
*This is not investment advice.
