In a sudden and unexpected move, Changpeng Zhao (CZ) has announced that he will be stepping down as CEO of Binance, the world's largest cryptocurrency exchange. The announcement came after months of speculation about CZ's future with the company, following a criminal investigation by the U.S. Department of Justice (DOJ) into Binance's alleged money laundering activities.
Binance has been under scrutiny over its anti-money laundering (AML) practices since 2019 when it was first reported that the exchange had failed to comply with basic KYC/AML procedures. In 2020, the U.S. Department of Justice (DOJ) launched a criminal investigation into Binance's alleged money laundering activities.
The DOJ's investigation is still ongoing, but it has already resulted in some significant developments. In 2021, Binance agreed to pay a $1.5 million fine to the Financial Crimes Enforcement Network (FinCEN) for failing to properly implement AML controls. In addition, Binance has been forced to shut down its operations in a number of countries, including the United States and China.
CZ's departure leaves a major void at the helm of Binance, and the question now is who will replace him. There are a number of internal candidates who could take over the role, but it is also possible that Binance will look to hire an outsider with more experience in traditional finance.
But who?
Internal Candidates
Among the internal candidates, the most likely successor is Richard Teng, who originally came onto the Binance team to be the CEO of Binance Singapore. Teng is a seasoned financial executive with a deep understanding of the cryptocurrency industry.
Other contenders could Include Yi He (Co-Founder & Chief Customer Service Officer), Noah Perlman (Binance’s Chief Compliance Officer), or Gleb Kostarev (Regional Head of Eastern Europe & CIS).
Interested in joining the Binance team, possibly as CEO? Throw your hat in the ring, here.
