The chief executive of Binance, the largest global cryptocurrency exchange, stepped down and pleaded guilty to violating U.S. anti-money-laundering requirements, in a deal that might preserve the company's ability to continue operating, according to court documents.

Changpeng Zhao appeared in Seattle federal court Tuesday and entered his plea, according to court records. Prosecutors accused Binance, which Zhao owns, of facilitating transactions with sanctioned groups. Binance encouraged U.S. users to obscure their location so the firm could avoid complying with U.S. anti-money-laundering laws, prosecutors said.