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Binance.US: CZ steps down as board chairman days after pleading guilty
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- CZ steps down from the Chairman position days after bidding goodbye to Binane.com
- This decision would bring down his role in the crypto exchange to that of an economic one
Days after Changpeng Zhao aka CZ stepped down as the CEO of the world’s biggest exchange – Binance, another similar move has followed. In an announcement made today, CZ will be stepping down as the Chairman of the Board of Directors for Binance.US, the American affiliate of the global crypto exchange.
The announcement follows CZ’s decision to plead guilty to the money laundering charges brought against him and the crypto exchange by the US Government last week. And, one of the settlement conditions for Binance was to accept the resignation of CZ. In addition to this, the global entity was required to bar him from management or operational roles for a period of three years.
However, the US government’s case was solely against CZ and the global crypto exchange – Binance.US. This aspect was even made clear during the press conference held regarding the prosecution.
CZ severs direct relationship with Binance.US
In a post released on X, formerly Twitter, Binance.US stated that CZ’s voting rights would be transferred “through a proxy arrangement”. This would bring down his interest in the firm to a purely economical one and would not be part of the governance aspects.
The American crypto exchange also reiterated that it was not part of the settlements with the US Government, which cost the global entity over $4 billion. Additionally, the platform also claimed to not have any “outstanding enforcement matters with the DOJ, FinCEN, OFAC, or CFTC.”
However, the American entity does have a pending case with the US Securities and Exchanges Commission (SEC). The commission has alleged securities law violations. And, according to the latest report by the Wall Street Journal, the commission was seeking evidence for potential fraud at Binance.US. Importantly, the commission is investigating whether or not Binance.US had a backdoor similar to FTX, a now-bankrupt crypto exchange.
The post further read,
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.
