Binance’s coin value fell on Tuesday after reports that Changpeng Zhao, founder of the world’s largest crypto exchange, will relinquish his role atop the company and plead guilty to violating U.S. money laundering laws.The move is part of a $4 billion settlement agreement with the U.S. Justice Department, along with the Commodity Futures Trading Commission (CFTC) and the Treasury Department, Reuters reported on Tuesday, citing sources familiar with the matter.The cryptocurrency’s coin value in relation to the U.S. dollar fell about 4 percent to $243 as of 2.35 p.m. ET on Tuesday, according to Google Finance data.Newsweek reached out to Binance, the Justice Department, the CFTC and the Treasury Department for comment via email on Tuesday afternoon.Part of the settlement, which will conclude a probe that has been ongoing for years, will demand that Binance pay $1.81 billion over the next 15 months and will forfeit an additional $2.51 billion, the outlet reported. Zhao was fined $50 million.Binance was facing accusations from U.S. authorities that included money laundering, operating an unlicensed money transfer business and violations of American sanctions, Bloomberg reported.Zhao could spend up to 10 years in prison. As part of the settlement, Zhao is waiving his right to appeal as long as he is not sentenced to more than 18 months, Bloomberg said, citing Judge Brian Tsuchida at the plea hearing at the U.S. District Court for the Western District of Washington.Zhao, colloquially know as “CZ,” launched Binance in 2017 and, led the company to become one of the world’s largest digital asset exchange in the world by trading volume, according to the company.”CZ spent his youth flipping burgers before studying at McGill University Montreal. In 2005, CZ quit his role as head of the Bloomberg Tradebook Futures Research & Development team and moved to Shanghai to start Fusion Systems,” Binance says in the company biography on its website. “Soon thereafter, he learned about Bitcoin and joined Blockchain.com as Head of Technology.”Binance offers a platform to 360 cryptocurrencies and boasts more than 150 million users, according to Bloomberg.The business turned Zhao, who was born in China but grew up in Canada, into a wealthy man. According to the Bloomberg Billionaires Index, he was worth more than $20 billion as of November 20, mostly from his controlling stake in Binance.
Binance Token Falls After CEO Changpeng Zhao Settlement
