Binance CEO Changpeng Zhao is reportedly set to resign as part of a settlement with the US Department of Justice (DOJ), according to a report by Forbes. The news has sent shockwaves through the cryptocurrency market, with Bitcoin falling below $37,000 and Binance’s native coin, BNB, dropping 7% to $240.
The rumoured resignation of Zhao could be part of the DOJ’s anticipated announcement, which is expected to be made later on Tuesday. According to Forbes, Richard Teng is allegedly poised to take over as the new CEO of Binance.
The market reaction to the news has been swift, with Bitcoin plunging 3% to $36,797 and Ethereum dropping 4% to $1,968. Overall, the crypto market cap was down 1.7% to $1.44 trillion.
The settlement with the DOJ comes after reports that the agency was seeking over $4 billion from Binance. Now, it appears that Zhao is likely to step down from his position as part of the deal to drop criminal investigations against the exchange.
An announcement by US Attorney General Merrick Garland is expected to reveal the details of the settlement, with reports suggesting that Zhao will plead guilty to charges levelled against him and the exchange.
The news of Zhao’s impending resignation has rattled the cryptocurrency market, which had already been under pressure amid heightened regulatory scrutiny. It remains to be seen how the departure of Zhao will impact Binance and the wider crypto industry.
As the situation continues to unfold, it is clear that the regulatory landscape for cryptocurrencies is evolving rapidly, and market participants will need to navigate these challenges carefully in the days and weeks ahead.