April 26, 2024
By Anjali Kochhar
Changpeng Zhao, the former CEO of cryptocurrency exchange Binance, is confronting the possibility of a 36-month prison sentence and a staggering $50 million fine, as recommended by the U.S. Department of Justice. The sentencing, slated for April 30, follows Zhao’s admission of guilt last November to violating anti-money laundering laws.
Court filings indicate that prosecutors are seeking a harsher penalty due to Zhao’s purported negligence in establishing a robust anti-money laundering program at Binance. Allegations suggest that the exchange’s practices facilitated illicit activities, including obscuring fund origins and breaching U.S. sanctions.
Despite stepping down as CEO, Zhao retains majority ownership of Binance and remains a prominent figure in the cryptocurrency realm, recently launching an educational initiative geared toward children.
Meanwhile, Binance’s dominance in bitcoin trading outside the U.S. has waned, plummeting from 81.3% to 55.3% over the past year, according to research firm Kaiko. This decline is attributed to the burgeoning presence of competitors like Bybit and OKX, particularly in Asia. Bybit’s share of non-U.S. bitcoin trading has surged to 9.3%, while OKX now commands 7.3%.
Under the stewardship of new CEO Richard Teng, a former regulator in Singapore, Binance is striving to revamp its image amid heightened regulatory scrutiny in the U.S. The exchange has tightened token listing protocols and bolstered its governance structure by appointing a board of directors.
The broader digital asset industry has experienced robust growth, buoyed by a fourfold surge in bitcoin’s price since the onset of last year. This surge propelled bitcoin to a record high of $73,798 last month, driving trading volumes across the market.
As Binance navigates legal challenges and regulatory headwinds, its competitors are seizing the opportunity to expand their market share, reshaping the competitive landscape of the digital asset industry.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
