Changpeng Zhao, the founder and CEO of Binance, the world’s largest cryptocurrency exchange, announced his resignation from the company via his verified Twitter handle on Tuesday.
In his statement, Mr. Zhao acknowledged the emotional difficulty of letting go but emphasized that stepping down was the right decision, taking responsibility for mistakes made during his tenure.
“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,” said Mr. Zhao.
He introduced Richard Teng, the former Global Head of Regional Markets, as the new CEO of Binance, praising Teng’s leadership skills and over three decades of financial services and regulatory experience.
The outgoing CEO expressed confidence that the new leadership, under Richard Teng, would focus on enhancing security, transparency, compliance, and growth for Binance.
Mr. Richard’s previous roles include CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM) and Chief Regulatory Officer of the Singapore Exchange (SGX).
While stepping down as CEO, Mr. Zhao emphasized his commitment as a shareholder and former CEO to remain available for consultation, aligning with the framework outlined in the company’s U.S. agency resolutions.
Binance has recently faced challenges, including plans to exit the Netherlands, Cyprus, Canada, and Australia.
The company also encountered legal issues, with the U.S. Securities and Exchange Commission (SEC) filing a lawsuit in June, alleging market manipulation and misleading investors.
On Tuesday, Binance pleaded guilty to criminal charges related to money laundering and breaching international financial sanctions.
The company agreed to pay over $4.3 billion in penalties, admitting to anti-money laundering, unlicensed money transmitting, and sanctions violations that allegedly occurred between August 2017 and October 2022.
As Binance undergoes a change in leadership amidst regulatory scrutiny, the cryptocurrency industry awaits developments in the company’s efforts to address compliance issues and maintain its position in the evolving financial landscape.
