Bye, Bye, Binance?

Authors
Caroline Chen, Clifford Kyle Jones, Danielle Lazerson, Emmanuel Sequeria
Region
North America
Topic
Accounting & Finance
Ethics & Social Justice
Strategy & General Management
Length
3 pages
Keywords
business
finance
ethics
Journal of Critical Incidents
JCI
Copyright Holder
Society for Case Research
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

On November 23, 2023, the CEO of Binance, the world’s largest cryptocurrency exchange, Changpeng Zhao (CZ), resigned, pled guilty to running afoul of U.S. laws, and agreed to have Binance pay a $4.3 billion settlement and personally pay a $50 million settlement to the U.S. Department of Justice. Despite the settlement payments and facing a probable prison sentence, CZ arguably had maximized both shareholders’ and his own value by skirting U.S. regulators for five years.

Learning Outcomes

In completing this assignment, students should be able to: 

1. Determine the appropriate laws associated with operating a cryptocurrency exchange. 

2. Compare shareholder to stakeholder capitalism. 

3. Analyze ethical implications of focusing solely on maximizing shareholder value. 

4. Evaluate the costs and benefits of decisions, including ethical implications and valuation techniques.