Changpeng “CZ” Zhao, a co-founder of Binance, has resigned as Chairman of Binance Holdings Ltd., the US division of the international exchange.
CZ Transfers His US Voting Rights on Binance
Changpeng Zhao has not only agreed to resign from the board, but he has also transferred his voting shares through a proxy arrangement, as the US affiliate disclosed in its announcement to the community.
The trading platform also made clear where it stands on the historic settlement that the global exchange signed with the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and the US Department of Justice (DOJ). According to Binance US, it was not a party to the $4.3 billion settlement and does not presently have any outstanding enforcement matters with these regulatory organizations.
Regarding the exchange’s next stage of expansion, it stated that its operations will not be impacted by the global organization’s transition because Norman Reed, the exchange’s CEO, will continue to lead the company alongside a group of seasoned management professionals. Despite recent reports of a declining market share, Binance US stated that it is well capitalized.
All things considered, Binance US stated that while it works to strengthen its compliance and business push, it is dedicated to its growth push.
Do The Founder of Binance’s Problems Get Worse?
The news from Binance US has sent conflicting messages to the larger cryptocurrency community, with many claiming that the separation is meant to offer protection while the government crackdown on CZ may eventually intensify. His request to depart the United States until his sentencing hearing has already been turned down.
The United States Securities and Exchange Commission (SEC) is already looking for evidence of improper behavior at Binance US in light of the DOJ Crackdown in order to intensify its enforcement action against the company.
The founder of Binance has maintained throughout all of this that he is “mentally stable” and in He reaffirmed his intention to concentrate on new research projects with cryptocurrency funding in one of his most recent posts on X.