In a significant development on Tuesday, November 28, Changpeng Zhao (CZ), the founder and former CEO of Binance, has decided to step down as chairman of the board for Binance’s US affiliate.
Binance.US made this announcement through a tweet, clarifying that the US affiliate was not part of the recent substantial multibillion-dollar settlement between Binance and various US regulators and law enforcement entities. As part of this move, Zhao will transfer his voting rights to a proxy. In their announcement, Binance.US stated that it remains fully operational. The official tweet announcement reads:
“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. Binance.US continues to be led by Norman Reed and our existing, experienced management team. We are well capitalized to continue to build and grow our platform and to do so with renewed clarity and momentum, while maintaining the same customer first commitment.”
Last week, Changpeng Zhao entered a guilty plea in a Seattle court, acknowledging the violation of the Bank Secrecy Act and causing a financial institution to do the same. As part of this legal resolution, he agreed to a $50 million fine and subsequently stepped down from his role as CEO of Binance.
Court Sentencing for CZ