Former Binance.com CEO, Changpeng ‘CZ’ Zhao has resigned as the chairman of the board of directors for Binance.US, the American branch of the global crypto exchange Binance. This move comes amid Zhao’s recent legal challenges and a concerted effort to distance the U.S. operations from its global counterpart.
Zhao’s decision to step down follows his guilty plea in a Seattle court for violations of the Bank Secrecy Act. Alongside this plea, he has agreed to pay a substantial $50 million fine and has also relinquished his role as the CEO of Binance. These developments mark a turning point in Zhao’s leadership within the cryptocurrency sector.
Binance.US, in a statement released on the social media platform X, emphasized its operational independence from Binance.com. The company clarified that it is not involved in the settlements related to Zhao’s case and has no pending issues with major U.S. regulatory bodies like the DOJ, FinCEN, OFAC, or CFTC. Binance.US reaffirmed its commitment to serving U.S. customers in compliance with local regulations and its continued full operational status.
Zhao’s exit from the governance of Binance.US is accompanied by the transfer of his voting rights through a proxy arrangement. This change reduces his role in the company to a purely economic interest, with no involvement in its governance or decision-making processes.
As you know, https://t.co/AZwoBOgsqS was launched with the express purpose of serving United States customers in accordance with all…
— Binance.US 🇺🇸 (@BinanceUS) November 28, 2023
As part of this transition, Binance.US will continue under the leadership of Norman Reed and its current management team. The company has expressed gratitude towards Zhao for his past guidance and is poised to focus on growth and customer commitment, maintaining its vision to modernize and democratize the financial system.
In a related development, a U.S. judge has ordered Zhao to remain in the United States until his sentencing in February. This decision follows a request for a review of the conditions that would have allowed him to return to the United Arab Emirates before his court appearance. The future of Zhao’s involvement in the crypto industry remains uncertain as these legal proceedings unfold.