Changpeng “CZ” Zhao has stepped down as CEO of Binance as part of a substantial $4 billion settlement with various United States regulatory bodies. The resolution follows lengthy investigations into anti-money laundering and sanctions violations by the Department of Justice and others.

In a statement on the platform formerly known as Twitter, Zhao acknowledged his mistakes, stating, “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.” Binance also admitted to lacking appropriate compliance controls in its early stages.

Despite resigning as CEO, Zhao will remain Binance's majority shareholder and serve as a resource for consultation on historical aspects of the business. Richard Teng will take over as CEO.

As part of the settlement, Zhao pleaded guilty to anti-money laundering and sanctions violations in federal court. Binance settled charges with various agencies, including the Department of Justice, Commodities Futures Trading Commission, FinCEN, and OFAC, with a $3.4 billion penalty to FinCEN, $968 million to OFAC, and a five-year monitorship allowing the Treasury Department access to Binance's records.

The Treasury Department accused Binance of neglecting to prevent and report suspicious transactions involving terrorist groups like Al Qaeda and ISIS. Treasury Secretary Janet Yellen noted that Binance's failures allowed money to flow to terrorists, cybercriminals, and child abusers.

In June, the SEC filed charges against Binance and Zhao for running an unregistered exchange and misleading investors. The ongoing case alleges deception, conflicts of interest, lack of disclosure, and evasion of the law. Brian Armstrong, CEO of Coinbase, sees the regulatory action as an opportunity for the industry to embark on a new chapter, hoping it will lead to greater regulatory clarity.