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- Changpeng “CZ” Zhao, the founder and former CEO of Binance, is stepping down from the chairmanship of the board of directors of the global exchange’s U.S. subsidiary.
- As part of the settlement, the company agreed to pay $4.3 billion, fully exit the U.S., and accepted Zhao’s resignation as CEO.
- A Treasury official reported that Binance US is not part of the agreement because it is a registered business.
Changpeng Zhao, the former CEO of Binance, has decided to resign from his position at Binance US, even though it is not part of the agreement.
Former CEO of Binance Departs from Binance US
Changpeng “CZ” Zhao, the founder and former CEO of Binance, is stepping down from the chairmanship of the board of directors of the global exchange’s U.S. subsidiary. Binance US announced in a tweet on Tuesday that despite not being part of the multi-billion-dollar deal that took place last week between Binance, various U.S. regulatory and legal entities, Zhao will transfer his voting rights to a representative.
In its statement, Binance US said, “Despite this agreement, CZ has decided to step down from the role of Chairman of the Board and transfer his voting rights through a representative arrangement as he transitions to life beyond Binance, and his interest in the company is entirely economic and he will no longer be involved in management.”
Binance was accused of operating in the U.S. without registering with any appropriate organization, leading to the permission for U.S. crypto investors to trade with Binance customers from sanctioned regions. As part of the settlement, the company agreed to pay $4.3 billion, fully exit the U.S., and accepted Zhao’s resignation as CEO.
Binance US Not Involved in Binance Agreement
A Treasury official reported that Binance US is not part of the agreement because it is a registered business. Although not part of last week’s agreement, Binance US faces an action by the U.S. Securities and Exchange Commission (SEC) accusing it of offering unregistered securities to U.S. investors.
This lawsuit also involves Binance and Zhao and is ongoing. In its statement, Binance concluded, “Binance US, led by Norman Reed and our current experienced management team, operates with a strong capital structure to continue building and growing our platform, maintaining the same customer-centric commitment.”