ChangPeng Zhao (CZ) is now the former CEO of Binance, the world’s largest cryptocurrency exchange over an allegation of mismanagement of funds on his part. According to a report CZ is said to have stepped down from his position after pleading guilty to violating US anti-money laundering law.

Announcing his resignation, CZ wrote on his X handle that Richard Teng, former Global Head of Regional Market, will take his position.

The post read: “Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.

“Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has.

“I’m pleased to announce that Richard Teng, our now former Global Head of Regional Markets, has been named the new CEO of Binance today.”

CZ added that Richard is a highly qualified leader and has over three decades of financial services and regulatory experience, as he will navigate the company through its next period of growth. He will ensure Binance delivers on our next phase of security, transparency, compliance, and growth.

According to General Merrick Garland, a US Attorney: “Binance made it easy for criminals to move their stolen funds and illicit proceeds on its exchanges. Binance also did more than just fail to comply with federal law. It pretended to comply.”

A report on New York Times said the Justice Department, which negotiated the settlement with the Commodity Futures Trading Commission (CFTC) and the Treasury Department, is seeking an 18-month jail sentence for Zhao, the maximum allowed under federal guidelines.

Binance will pay $1.81 billion within 15 months, and a further $2.51 billion forfeiture as part of the deal, prosecutors said.

Taking up leadership position, Teng’s post on X handle read: “It is an honour and with the deepest humility that I step into the role of Binance’s new CEO. We operate the world’s largest cryptocurrency exchange by volume. The trust placed on us by our 150m users and thousands of employees is a responsibility that I take seriously and hold dear.

“With CZ, and our leadership team’s support, I have accepted this role so that we can continue to meet and exceed the expectations of stakeholders while achieving our core mission, the freedom of money. The foundation on which Binance stands today is stronger than ever.”

Prior to joining Binance, Richard was CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM); Chief Regulatory Officer of the Singapore Exchange (SGX); and Director of Corporate Finance in the Monetary Authority of Singapore.

CZ also added: “With Richard and the entire team, I’m confident that the best days for @Binance and the crypto industry lay ahead. On that note, I am proud to point out that in our resolutions with the U.S. agencies they: do not allege that Binance misappropriated any user funds, and do not allege that Binance engaged in any market manipulation.”

Teng said his focus will be reassuring users that they can remain confident in the financial strength, security and safety of the company, collaborating with regulators to uphold high standards that foster innovation globally, while providing important consumer protections and working with partners to drive growth and adoption of Web3.