Changpeng Zhao speaks out after pleading guilty to criminal charges, names Richard Teng as new Binance CEO

cnbc.com:

Former Binance CEO Changpeng Zhao on Tuesday named a new CEO of the cryptocurrency exchange he founded, after pleading guilty to federal money laundering charges and stepping down as the company's chief.

Zhao named Richard Teng, a former CEO of Abu Dhabi Global Market, the UAE capital's financial services regulator, as Binance's new CEO. Teng was most recently global head of regional markets at Binance. He was also previously director of corporate finance at the Monetary Authority of Singapore.

In a post on X, Zhao said he «must take responsibility,» and that it was «not easy to let go emotionally.» The controversial crypto entrepreneur, who was accused of violating the U.S. Bank Secrecy Act and sanctions violations, added that he was «proud to point out» U.S. agencies did not allege Binance had misappropriated user funds or market manipulation.

The case against Binance, which was unsealed on Tuesday afternoon, shows that the exchange faces three criminal charges, including conducting an unlicensed money-transmitting business, violating the International Emergency Economic Powers Act, as well as a conspiracy charge. The exchange has agreed to $4.3 billion in fines and forfeiture.

The former Binance chief will personally plead guilty to violating and causing a financial institution to violate the Bank Secrecy Act, according to the plea agreement. The DOJ is also recommending that the court impose a $50 million fine on Zhao.

The settlement comes just after FTX founder Sam Bankman-Fried was found guilty of several criminal counts of fraud and conspiracy following just three hours of deliberation by the jury. For a high-profile monthlong trial that involved nearly 20 witnesses and hundreds of exhibits, experts told CNBC