Zhao Pleads Guilty in Binance Cryptocurrency Exchange

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Former CEO Resigned in November

Changpeng "CZ" Zhao, the founder and former CEO of Binance, the world's largest cryptocurrency exchange, pleaded guilty on Tuesday to violating US money laundering laws and operating an unlicensed money transmitting business.

Zhao, who resigned from Binance in November, entered his plea in federal court in Seattle. The charges stem from Binance's failure to register with the Financial Crimes Enforcement Network (FinCEN) and to implement adequate anti-money laundering controls.

As part of the plea deal, Zhao agreed to pay a $250,000 fine and to help authorities investigate the company's operations. Binance also agreed to pay a $500,000 fine.

The charges against Zhao and Binance are the latest in a series of regulatory crackdowns on cryptocurrency exchanges. In recent months, several other exchanges have been fined or shut down for violating anti-money laundering laws.