Changpeng Zhao is resigning as the CEO of Binance amidst an investigation by the US Securities and Exchange Commission (SEC).

On Tuesday, Changpeng Zhao, the founder of Binance, officially announced that he is stepping down as CEO. Even though a new CEO has been named, there is a cautious mood in the market.

Highlights

• Changpeng Zhao, also known as CZ, has confirmed an unexpected departure from his role as Binance's CEO.
• The surprise disclosure is linked to a $4.3 billion settlement with the US Securities and Exchange Commission, as reported by Bloomberg.
• In response to the news, the exchange has swiftly introduced Richard Teng as the new CEO, easing concerns among investors.  

Changpeng Zhao has confirmed his departure as CEO of Binance. On November 21, the US Department of Justice announced that CZ has agreed to step down. Shortly after, CZ confirmed through a Twitter post that he will "take responsibility" as he leaves his role as CEO of the leading cryptocurrency exchange by trading volume.

This surprising announcement is part of a reported $4.3 billion settlement with the US Securities and Exchange Commission (SEC), in which Binance admitted to being used for funneling money to Hamas. Richard Teng, who was appointed to oversee Binance’s regional markets outside the US in June, has been named as CZ’s successor. Teng's extensive experience in regulation and compliance, including his previous roles at Abu Dhabi Global Market and the Singapore Exchange, sets him apart for this role.