Binance founder quits CEO post, pleads guilty to US charge

The founder of Binance, the world's largest cryptocurrency exchange, pleaded guilty on Tuesday to a felony charge concerning his failure to prevent money laundering on the platform, US authorities said.

Founder Changpeng Zhao also announced he was stepping down as CEO of the exchange.

US authorities said Binance deliberately withheld information from law enforcement, undermined sanctions controls and failed to report suspicious transactions, including on child sexual abuse, illegal drugs and terrorism.

The US Treasury announced on Tuesday the "largest settlements in history" with Binance, over the accusations against the exchange platform.

The Treasury said Binance settled with US agencies for violations of the Bank Secrecy Act, as well as "apparent violations of multiple sanctions programs."

The exchange platform is accused of failing to prevent and report suspicious terrorist transactions including  Hamas' armed wing al-Qassam Brigades, Palestinian Islamic Jihad (PIJ), al-Qaeda and the IS. 

The Treasury also accused Binance of not reporting or preventing transactions by ransomware attackers and money launderers.

The platform also allegedly connected traders between US users and others in sanctioned jurisdictions including Iran, North Korea, Syria and the Crimea region.

“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” said US Treasury Secretary Yellen.