Binance CEO, Face Of Malta’s Blockchain Island Dream, Steps Down And Pleads Guilty
Changpeng Zhao, the main face of Malta’s ‘Blockchain Island’ initiative a few years ago, has agreed to step down as CEO of the cryptocurrency exchange Binance.
Zhao stepped down and pleaded guilty to breaching US anti-money laundering laws as part of a $4.3 billion settlement to conclude an investigation into Binance’s activities.
As part of the settlement, Zhao agreed to personally pay $50 million, which prosecutors described as one of the largest corporate penalties in US history.
Zhao is well known in Malta for being one of the first major names in the crypto industry to announce his plans to relocate to the island as part of the ‘Blockchain Island’ drive in 2018.
He was personally welcomed by then Prime Minister Joseph Muscat, who said Malta aims to be the “global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world-class fintech companies”.
He appeared to maintain a friendly relationship with key members of the Maltese government, at one point praising the work ethic of Economy Minsiter Silvio Schembri for agreeing to meet him on a Saturday.
Zhao’s decision heralded a stream of major interest in Malta, with the likes of Apple co-founder Steve Wozniak and the late John McAfee visiting the island at moments.
Changpeng Zhao (second from left) with Joseph Muscat and Silvio Schembri
Although some companies, including Binance, did set up offices in Malta, the Blockchain Island hype eventually fizzled out due to regulatory and banking issues.
Zhao said that while stepping down from Binance wasn’t easy, it was “the right thing to do”.
“I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself,” he wrote on X.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ 🔶 Binance (@cz_binance) November 21, 2023
“Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has.”
He stressed that the settlement with US agencies doesn’t inlace allegations that Binance misappropriated user funds or engaged in market manipulation.
Zhao will remain Binance’s majority shareholder and will remain available for consultation as needed, but he has been succeeded as CEO by Richard Teng.
“With Richard and the entire team, I’m confident that the best days for Binance and the crypto industry lay ahead,” Zhao said.
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