Zhao’s X account restriction is linked to a profile name change, prompting him to urge Elon Musk to enhance X’s bot detection algorithms.
In a surprising twist, Changpeng Zhao, the co-founder and ex-CEO of Binance, faced a temporary restriction on his X account, which was later lifted. This happened during a time when Binance, the biggest cryptocurrency exchange globally, was surrounded by various controversies.
Historic Settlement and Plea from Binance and Zhao
In a landmark settlement, Binance and its co-founder, Zhao, admitted guilt to numerous violations and accepted a massive fine of $4.3 billion. Following an hour-long restriction, Zhao’s account was reinstated, with the restriction reportedly tied to a change in his profile name. Zhao called on Elon Musk to enhance X’s bot detection algorithms to prevent similar occurrences.
Happy Thanksgiving! 🦃
No need to FUD. All good now. 🙏 pic.twitter.com/IhkSTNwFvi
— CZ 🔶 BNB (@cz_binance) November 23, 2023
Acknowledging multiple charges, including anti-money laundering violations, Zhao agreed to a personal fine of $50 million. Remarkably, he managed to evade imprisonment and was released on a substantial $175 million personal recognizance bond.
These controversies have not only impacted Zhao’s social media presence but have also cast a spotlight on questions surrounding Binance’s operations.
Regulatory Storm Hits Binance: SEC and CFTC Allegations
The Securities and Exchange Commission (SEC) has accused Zhao of directing billions of customer funds to firms under his control through an intermediary holding company.
Simultaneously, the U.S. Commodity Futures Trading Commission (CFTC) charged Binance and Zhao with willful evasion of federal law and running an illegal digital asset derivatives exchange. These charges have sent shockwaves through the cryptocurrency community, given Binance’s significant standing in the industry.
These recent events mark a substantial setback for Binance, a platform handling $65 billion in daily trades with a customer base of 128 million. As a cornerstone of the $1 trillion digital asset market, the company now faces uncertainties about its future due to the ongoing controversies.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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