Ripple CLO Commends Changpeng Zhao’s Resolvement With US Dept. Of Justice
In a recent report, the chief legal officer at Ripple Labs, Stuart Alderoty, applauded Chanpeng Zhao, the chief executive officer of Binance exchange, stating that he did well for himself and the entire crypto community as he took the bold step to resign his position in order to mitigate his legal issues with the United States Department of Justice.
As previously reported, Changpeng Zhao, popularly called CZ, has decided to step down from the leading role in his crypto company as Richard Teng, the initial chief of regional markets at the firm to his place as the new CEO of Binance exchange. According to the report, CZ’s resignation was part of the resolution deal he struck with the United States DoJ, alongside the fine of $4.3 billion he would pay so as to resolve money-laundering charges filed against him.
Shortly after he took the decision, CZ received many remarks applauding him for the steps he took to address the issue at hand.
Alderolty Applauds CZ For His Bold Decision
One of the comments was Justin Sun, the founder of Tron and CZ’s friend. However, a report showed that the chief legal officer of Ripple, Stuart Alderoy is one of the latest people to talk on the matter.
In his tweet, Alderoty pointed out the significance of CZ’s resolution with the government agency for the entire crypto industry. He said it was necessary for Binance and CZ to take such a step since the giant exchange introduced the crypto ecosystem to the financial regulators. He added that at some points in the past, major financial institutes also passed through the same process.
Furthermore, Alderoty highlighted that it was worth noting that the DoJ avoided suing Binance for breaching any securities laws or listed unregistered tokens unlike what the United States Securities and Exchange Commission did to Kraken and Coinbase exchange earlier this year.
SEC Has Become An Outlier Within Its Government
He added that since the American Treasury Office as well as the Commodity Futures Trading Commission had allied to accuse Binance, there was no room for the SEC to stage its accusations.
Reading meaning to the SEC being left out of the lawsuit alliance, Alderoty stated that it shows that the commission is gradually becoming an outlier within its government as it had become globally due to its extreme and outrageous enforcement approach. In addition, he stated that the SEC is obsessed with competing for the spotlight after the commission tweeted about filing a lawsuit against Kraken simultaneously with the DoJ announcing its hearing on Binance’s case.
In addition, Alderoty claimed that the charges the SEC leveled against Kraken had no significance under the constitution as the Department of Justice refused to file the same charge against Binance. He added that several courts at different points in time had stated that the tokens in question were non-security ones.
CZ Talks About His Plans After Resignation
Shortly after his resignation, CZ addressed the crypto community in a tweet where he opened up on his plans after the exit. He said that it was not an easy decision for him, but he had to step down so as to take responsibility for his mishaps. He added that Binance Exchange had outgrown the baby he nurtured, and it was time he let it walk and fly as he firmly believed that the firm would continue to grow and thrive in the competent hands he had left it.
Assuming his position as the new CEO, CN Named Richard Teng, stated that he had vast experience in financial and regulatory protocols needed to keep the firm sailing forward. CZ said he remains a shareholder of the firm as a consultant to help the firm grow in any area he is needed.
Furthermore, the ex-CEO of Binance said he does not wish to start a new firm. However, he is open to advising and helping other smaller crypto firms grow.
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