Changpeng Zhao “CZ“, the founder and former CEO of Binance, has stepped down from his role as the chairman of the board of directors for Binance.US, the American affiliate of the global crypto exchange. This decision comes days after he pleaded guilty to money laundering charges brought by the US government and agreed to pay a $4 billion settlement.
According to a statement released by Binance.US on X, formerly Twitter, CZ’s voting rights will be transferred “through a proxy arrangement” to reduce his involvement in the governance of the platform. He will retain his economic interest in the company, but will not have any direct or indirect influence on its operations.
We wanted to provide an update to the https://t.co/AZwoBOgsqS community in light of last week’s news regarding CZ and https://t.co/IZwa5M2U8b.
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
The statement also clarified that Binance.US was not part of the settlement with the US Department of Justice (DOJ), the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), or the Commodity Futures Trading Commission (CFTC).
Despite CZ Stepping Down as CEO, the SEC Continues to Put Pressure on Binance
However, the platform is still facing a pending investigation by the Securities and Exchange Commission (SEC) for alleged securities law violations. The SEC is reportedly seeking evidence for potential fraud at Binance.US, similar to the case of FTX, a now-bankrupt crypto exchange that had a backdoor to allow US customers to access unregistered securities.
The SEC has also issued subpoenas to several former and current employees of Binance.US, including its former CEO Brian Brooks, who resigned in August after less than four months on the job. CZ’s resignation from Binance.US is the latest move in his attempt to distance himself from the regulatory scrutiny that has plagued Binance in recent months.
Last week, he announced that he would step down as the CEO of Binance and appoint a successor with a strong compliance background. He also said that he would cooperate with the authorities and work to improve the compliance standards of the crypto industry.
Binance.US expressed its gratitude to CZ for his guidance and support over the years and said that it would continue to offer a superior crypto trading experience to its US customers. The platform also said that it would announce a new board chairman and a new CEO in the near future.
