The founder of the world’s largest crypto exchange has stepped down – and pleaded guilty to breaking anti-money laundering laws.
Changpeng Zhao’s shock departure from Binance comes as part of a $4bn (£3.2bn) settlement that has been reached with US regulators.
It is the culmination of a multi-year investigation into the trading platform, and the billionaire – known as “CZ” – is set to be sentenced next year.
The case bears similarities to the collapse of FTX, which was the world’s second-largest exchange – and Sam Bankman-Fried was found guilty on fraud charges earlier this month.
Bankman-Fried was convicted of misusing billions of dollars in funds belonging to customers, and now faces the prospect of spending decades behind bars.
In court on Tuesday, Zhao admitted that he had failed to take steps to prevent money laundering at Binance.
The embattled entrepreneur lives in the United Arab Emirates, which does not have an extradition treaty with the US.
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But his lawyer told a court in Seattle: “He decided to come here and face the consequences. He’s sitting here. He pled guilty.”
Image: Binance founder and chief executive Zhao Changpeng. Pic: Singapore Press via AP
Zhao has also vowed to return when he is sentenced, telling the judge: “I want to take responsibility and close this chapter in my life. I want to come back. Otherwise I wouldn’t be here today.”
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In separate developments, the US Securities and Exchange Commission sued Binance and Zhao in June – accusing the company of artificially inflating trading volumes, diverting customer funds, and misleading investors.
This is the latest setback for the sector, which has been left reeling after a slew of controversies and hacks.
Major cryptocurrencies – including Bitcoin and Ether – fell as markets digested the news.
Reports also suggest that Binance customers are pulling funds from the platform.
Police have taken 21 children into custody, amid allegations that a couple in Los Angeles may have misled surrogate mothers across the US.
Silvia Zhang, 38, and Guojun Xuan, 65, are believed to be the legal parents of the children, who are aged between two months and 13 years old.
“We believe one or two were born biologically to the mother,” Lieutenant Kollin Cieadlo said. “There are some surrogates who have come forward and said they were surrogates for the children.”
“The couple told police that they wanted a large family,” he added.
Image: The home of Silva Zhang and Guojun Xuan, northeast of downtown Los Angeles
Fifteen children were removed from the couple’s home in Arcadia, about 13 miles northeast of downtown Los Angeles, after an abuse allegation was made. Another six living in the care of family and friends were also located.
The couple were arrested in May after a hospital reported that their two-month-old infant had a traumatic head injury – with a nanny accused of violently shaking the baby.
The infant was not taken to hospital until two days later, after they began suffering seizures.
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CCTV footage recorded inside the home showed the children being emotionally and physically abused by at least six nannies.
Image: The couple’s property had CCTV cameras, which police said recorded footage of abuse by nannies. Pic: AP
Lt Cieadlo said Zhang had produced what appeared to be legitimate birth certificates, including some from outside California, that list her as the mother of the children.
Business records show a company called Mark Surrogacy Investment LLC was previously registered at the couple’s address, although the most recent documents show the business licence ended in June.
Police said they are investigating whether the children found at the home in the San Gabriel Valley were part of a surrogacy scam.
Lt Cieadlo also confirmed officers were working with the FBI as part of their investigation.
Kayla Elliott, one of the surrogate mothers who has come forward, told Sky’s US partner NBC News: “I was a bit hysterical. You just don’t expect that you’re going to go through a pregnancy and a delivery and then hand the baby over to their parents and then all of a sudden find out that there was abuse and neglect going on.”
Arrest warrants were issued for Zhang, Xuan and the 56-year-old nanny, who was not in custody on Wednesday. Zhang and Xuan were detained on suspicion of child endangerment/neglect.
The Los Angeles County Department of Children and Family Services, which removed the couple’s children, declined to comment on the case.
Disgraced British socialite Ghislaine Maxwell could use “government misconduct” to challenge her imprisonment, her family has claimed.
The 63-year-old, who was jailed in 2022 for luring young girls to massage rooms for Jeffrey Epstein to abuse, is currently serving a 20-year prison sentence.
Maxwell’s family have frequently claimed she “did not receive a fair trial”, but legal appeals against her sex trafficking convictions have been rejected by the courts.
The latest challenge from the Maxwell family comes as President Donald Trump faces questions over whether or not he will order the release of the so-called Epstein “client list”, following a backlash from Republican loyalists who have called for any list to be made public.
Image: Ghislaine Maxwell. Pic: US Department of Justice
The family argue that Maxwell should have been protected under an agreement Epstein had entered with the US Department of Justice in 2007, which agreed not to prosecute any of his co-conspirators.
During her trial in 2021, Maxwell was described as “dangerous” by prosecutors, who told jurors about how she would entice vulnerable girls to go to Epstein’s properties for him to sexually abuse.
In a statement, her family said: “Our sister Ghislaine did not receive a fair trial.
“Her legal team continues to fight her case in the courts and will file its reply in short order to the government’s opposition in the US Supreme Court.”
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Is Trump in a corner over Epstein?
David Oscar Markus, one of her lawyers, said in the statement released by her family: “I’d be surprised if President Trump knew his lawyers were asking the Supreme Court to let the government break a deal.
“He’s the ultimate dealmaker and I’m sure he’d agree that when the United States gives its word, it should keep it.
“With all the talk about who’s being prosecuted and who isn’t, it’s especially unfair that Ghislaine Maxwell remains in prison based on a promise the US government made and broke.’
“These are sentiments with which we profoundly concur.”
Epstein, 66, was found dead in his cell at a Manhattan federal jail in August 2019 as he awaited trial on sex trafficking charges. His death was ruled a suicide.