KEY POINTS
- Changpeng Zhao resigned from his post as the CEO of Binance last week
- He then gave up his role as the chairman of the board of director at Binance.US
- Zhao's latest move was reportedly not part of the settlement agreement with regulators
Binance founder Changpeng Zhao (CZ) stepped down as chairman of the board of directors of Binance.US — an action that many perceive as a bold and strategic way of trying to get regulators off his back.
A week after resigning as CEO of the biggest global crypto exchange platform by trading volume, its U.S. affiliate, Binance.US, announced that Zhao is leaving his crucial post in the exchange's board and is transferring his voting rights to a proxy.
The decision keeps Zhao from playing any role in Binance.US, including in the exchange's governance.
"As CZ transitions to life after Binance, he has decided to step down from his role as Chairman of our Board of Directors and transferred his voting rights through a proxy arrangement, whereby his interest in the company is purely economic and he will no longer be involved in our governance," Binance.US said.
"We are exceptionally grateful to CZ for his guidance and counsel over the years. With his support, we have established Binance.US as a destination of choice of U.S. customers seeking a superior crypto trading experience," it added.
The exchange also clarified that the move was not part of the historic multibillion-dollar settlement agreement between its mother company Binance and U.S. regulators. It then assured the public of its commitment to serve continuously.
"Binance.US is not a party to the settlements announced last week, nor do we have any outstanding enforcement matters with the DOJ, FinCEN, OFAC or CFTC. We remain fully operational and are committed to continuing to serve our customers with the same products and services as we always have," the exchange said in a post on X.
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.
— Binance.US 🇺🇸 (@BinanceUS) November 28, 2023
As you know, https://t.co/AZwoBOgsqS was launched with the express purpose of serving United States customers in accordance with all…
In August, it was reported that Zhao almost shut down and sold the U.S. arm of Binance to protect its global operation. However, the move was blocked by its then-CEO Brian Shroder.
Zhao was apparently willing to go so far just to protect the global operation of Binance, considering that the crypto empire was getting regulatory scrutiny at the time.
In May, reports claimed Zhao was considering letting go of some of his majority stake in Binance.US, where he served as chairman of the board. It was reportedly part of the discussion on how to make the exchange more palatable to U.S. regulators.
These actions made by Binance.US earlier this year came at the heels of the lawsuit filed by the Commodity Futures Trading Commission (CFTC) alleging that the exchange's U.S. affiliate is operating an "illegal" business with a "sham" compliance program.
