Crypto giant Binance founder pleads guilty to violating money laundering law

Binance founder and CEO Changpeng Zhao will resign from the firm and has pleaded guilty to violating criminal law as part of a deal with the government of the United States.

Zhao’s resignation deal includes him pleading guilty to violating the Bank Secrecy Act, which deals with U.S. anti-money-laundering law. The 46-year-old Zhao, who doesn't live in the U.S., appeared in person on Tuesday in Seattle federal court, where he entered the guilty plea, Attorney General Merrick Garland said during a press conference announcing the action.

The Treasury Department announced Tuesday that Binance, the world’s largest cryptocurrency exchange, has agreed to pay more than $4 billion in fines to settle civil accusations from federal regulators. The settlement with the Financial Crimes Enforcement Network alone is for $3.4 billion, which is the largest settlement in Treasury Department history.