Binance Holdings and its CEO Changpeng Zhao (CZ) have agreed to plead guilty to criminal and civil charges in a $4.3 billion settlement with the US Department of Justice (DOJ).
CZ will resign from his position and plead guilty to violating anti-money laundering requirements, the Wall Street Journal reported.
The charges, which include allegations of money laundering, bank fraud, and sanctions violations, are part of a negotiated settlement allowing Binance to continue operations while addressing the criminal allegations.
Despite the guilty plea, CZ will retain his majority stake in Binance, indicating that he is unlikely to face jail time. However, he will be barred from holding an executive position within the company.
The settlement does not impact the ongoing litigation with the US Securities and Exchange Commission (SEC), which brought a case against Binance in June.
The DOJ settlement is expected to resolve the company's issues with the Commodity Futures Trading Commission (CFTC). The reported $4.3 billion settlement includes funds allocated to the CFTC's case and outstanding claims against Binance from the US Treasury Department.