Binance, the world’s biggest cryptocurrency exchange, is facing a major shakeup. Changpeng Zhao, the CEO and founder, is set to step down and admit to breaking U.S. laws. The move comes as part of a whopping $4 billion settlement, resolving a lengthy probe into alleged illicit finance breaches. Earlier, the US SEC launched an investigation on the crypto exchange Kraken. The US has become a war zone between the US authorities and crypto exchanges.

Binance Founder and CEO, Changpeng Zhao, to Step Down in $4.3 Billion U.S. Settlement

Reports from The Wall Street Journal and Reuters suggest that Zhao will plead guilty to violating U.S. anti-money laundering rules. In addition to Zhao’s departure, Binance, under his ownership, will also plead guilty to a criminal charge and pay fines totalling $4.3 billion.

The settlement involves multiple U.S. authorities, including the Justice Department, the Commodity Futures Trading Commission (CFTC), and the Treasury Department. Binance will pay $3.4 billion to the Treasury’s Financial Crimes Enforcement Network office and $968 million to the Treasury’s sanction unit.

This development is not limited to the company’s top leadership. Binance’s former chief compliance officer, Samuel Lim, will also face charges as part of the settlement. The company will need to address its compliance lapses.

Binance Coin Plunges 8% Amid CEO’s $4.3 Billion Settlement

The cryptocurrency market is already reacting. Binance Coin (BNB), the native token of Binance, has plummeted by 7%, currently trading at around $239. The news has sent shockwaves through the crypto space, affecting not only BNB but also other major cryptocurrencies like Bitcoin and Ethereum, which are experiencing gradual price dips.

The U.S. Department of Justice is expected to officially announce the settlement at 3 pm ET. While this settlement addresses allegations related to illicit finance and money laundering, it does not include a resolution with the U.S. Securities and Exchange Commission (SEC).

This marks a significant turn of events for Binance, once celebrated for its rapid rise in the cryptocurrency world. Now, it faces a hefty financial penalty and leadership changes, raising questions about its future in the rapidly evolving crypto landscape.