Changpeng “CZ” Zhao, a co-founder of Binance, has resigned as Chairman of Binance Holdings Ltd., the US international exchange division.
Changpeng Zhao has not only consented to resign from the board but also transferred his voting shares through a proxy arrangement, as the US affiliate disclosed in its notice to the community. The announcement reads:
“…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,”
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 has no outstanding enforcement matters with these regulatory organizations.
Regarding the exchange’s next expansion stage, it stated that the worldwide organization’s transfer will not impact its operations because Norman Reed, the exchange’s CEO, will continue to lead the company alongside a group of seasoned management professionals.
Despite recent allegations of a declining market share, Binance US stated that it is well capitalized. Binance US stated that while it works to strengthen its compliance and business drive, it is dedicated to its expansion push.
Is Binance Founder’s Woes Compounding?
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.
At the same time, the government pressure on CZ may eventually intensify. His desire 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 proof of improper behavior at Binance US in light of the DOJ Crackdown to intensify its enforcement action against the company.
The creator of Binance has maintained throughout that he is “mentally stable” and intends to concentrate on new research projects that receive cryptocurrency funding in one of his most recent postings on X.
