An era has ended for Binance. DOJ and CFTC collect 4.3 billion. CZ spring. Is prison possible?
It’s the end of an era. Arguably the most prominent figure in the entire crypto universe will have to step down as CEO of the most important exchange ever. Yes, CZ will step down and no longer be CEO of Binance.
The background to this incredible decision is an investigation by the Department of Justice that led to an agreement that so far includes $4.3 billion in fines and the forgiveness of CZ from its exchange.
We followed Live broadcast of the press conference on our Telegram channel. Enter, it’s free and you’ll never miss the most important news in the crypto world again.
Via CZ, Binance restarts with $4.3 billion fine
It is a day that will surely go down in the history of the crypto world. Binance will have to pay a fine of $4.3 billion, with the possibility of fines increasing if further irregularities are found.
Now FORMER CEO of the group Changpeng Zhao he will no longer be able to hold any corporate office and has handed over the baton Richard Tengwhich has already been discussed during last June.
Binance will pay a fine, as reported by Reuters, of $2.51 billion immediately, and the remaining $1.81 billion within 15 months. As for Zhao, the fine was set at $50 million.
In the Appendix Changpeng Zhao will no longer be able to cover a life, any kind of role within the company in the future. Furthermore, close monitoring will be imposed on the company for the next 3 years.
There are also the first reviews
The first criticism concerns the fine and the lack of prison for those involved. The Department of Justice is accused of striking a deal that does not include jail time for anyone in any case (including CZ, although the situation is more complicated) and of setting a fine that Binance will be able to pay in any case.
These are certainly justified criticisms for those who would prefer punishment Draconianwhich, however, were probably never on the table given that this point was reached by agreement rather than hearing.
As for CZ’s prison sentence, there will be a trial where he could face up to 10 years, according to Bloomberg. He also waived his right to appeal if the sentence is less than 18 months. However, this issue has yet to be fully understood, at least in part, and we will know more in a few weeks.
Wednesday, the 22nd at 21:00 Space for discussion of the problem
There will be one at 9 p.m. on Wednesday, the 22nd room dedicated to exactly what happened on Binance, in which we will also talk about the possible consequences for the entire crypto market.
Participation is free and you can also go on stage to share your doubts and questions. Don’t miss it!
Are Binance client funds safe?
Yes, and there is currently no reason to doubt that they are. The agencies did not have any negative communication about it.
For Binance, the shock will pass business as usual. This case, for those who were wondering, is very different from that one FTXand because he arrived in extremely different circumstances.
However, there will be space for conversation in our space on Wednesday.
Meanwhile, a tweet came from CZ admitting the mistakes and welcoming new CEO Richard Teng, who will have the perhaps thankless task of restarting Binance from the lowest point in its history.