As part of the agreement, CZ was slated to remain in detention for 18 months. However, the former head of Binance was released in less than 24 hours.
Changpeng Zhao (CZ), the former CEO of the world’s largest cryptocurrency exchange, Binance, stepped down on Tuesday, November 21, as part of a settlement deal with United States law enforcement agencies for violations of anti-money laundering laws and other financial crimes.
After six years as the face of the company, CZ has relinquished his role and pleaded guilty to criminal charges. In an official statement on X, formerly Twitter, CZ expressed the difficulty of emotionally letting go but emphasized that it was the right decision. He wrote:
“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.”
What’s Next for CZ?
Despite his departure from the exchange, the former Binance boss said in a post on Twitter that he is not leaving the crypto industry entirely, noting that he plans to stick around and explore other opportunities in the sector.
The 46-year-old Chinese-born Canadian software engineer plans to take a break before considering new business ventures.
“I will take a break first. I have not had a single day of real (phone off) breaks in the last six and a half years,” CZ said.
The former Binance boss expressed interest in investing and becoming a minority token/shareholder in startups related to blockchain, Web3, decentralized finance (DeFi), artificial intelligence (AI), and biotech after the break.
“I am happy that I will finally have more time to spend looking at DeFi,” added he.
While eager to explore the DeFi ecosystem, CZ clarified that he does not have plans to lead a new startup or become a CEO again. Instead, he is open to privately coaching and mentoring aspiring entrepreneurs, sharing his experiences and insights over the years.
“I can’t see myself being a CEO driving a startup again. I am content being a one-shot (lucky) entrepreneur. Should there be listeners, I may be open to being a private coach/mentor to a small number of upcoming entrepreneurs. If for nothing else, I can at least tell them what not to do.”
Funds Are SAFU
CZ reassured Binance users that their funds are secure (“SAFU”) even after his departure as CEO. Following the settlement with various US law enforcement agencies, including the Department of Justice (DOJ), Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Asset Control (OFAC), and the Commodity Futures Trading Commission (CFTC), CZ revealed that all charges against the crypto exchange have been dismissed.
CZ said the authorities no longer allege that Binance misappropriated users’ funds or participated in any market manipulation. As part of the settlement, Binance agreed to pay over $4 billion, with CZ stepping down from his position.
CZ Binance Regains Freedom After Brief Custody
As part of the agreement, CZ was slated to remain in detention for 18 months. However, the former head of Binance was released in less than 24 hours.
As per official court records, the software engineer, originally from China, paid $15 million as part of the $175 million recognized personal bond for his release.
In adherence to the release terms, he has undertaken to forfeit funds in case of any violation and has enlisted two guarantors who have pledged amounts of $250,000 and $100,000, respectively. A sentencing is scheduled for February 23, 2024, at 9 a.m. Pacific Time.
Conditions for Zhao’s release include abstaining from illegal activities, tampering with witnesses or victims, and refraining from consuming non-prescribed controlled substances – standard provisions in a bond release.
