May 29, 2024
Binance's CZ Zhao Steps Away from Binance.US
Latest Cryptocurrency News

Legal Turmoil Continues: CZ Zhao Leaves Binance.US Board Post-Settlement

Changpeng “CZ” Zhao, the former CEO of the renowned cryptocurrency exchange Binance, has made headlines by announcing his resignation from the board of directors chair at Binance.US, a United States-based offshoot of the exchange. This significant move follows the monumental $4.3 billion settlement involving U.S. officials, Binance, and CZ unveiled on November 21.

In a notable Nov. 28 social media post on X (previously known as Twitter), Binance.US made it clear that it was not directly involved in the aforementioned settlement. However, it confirmed Zhao’s decision to step down from his chair position and relinquish his active role in the governance of Binance.US, opting instead to transfer his voting rights through a proxy.

Expressing deep appreciation for CZ’s past guidance and counsel, the exchange reiterated its commitment to continuity under the leadership of Norman Reed and the seasoned management team already in place. Interestingly, as of the latest update, Zhao had not publicly addressed or commented on his resignation. His most recent communication on X hinted at having “a lot more free time” after stepping down as the CEO of Binance.

Furthermore, on the legal front, Zhao had previously pleaded guilty to a felony count related to the failure to maintain an effective anti-money laundering program during his tenure as the CEO of Binance. Presently, the court is deliberating on whether Zhao will be permitted to travel to the United Arab Emirates while awaiting sentencing. This situation could potentially lead to an 18-month prison term for the former Binance CEO.

In another legal twist, Binance.US, although not directly involved in the settlement with the U.S. Justice Department, finds itself entangled in a lawsuit initiated by the Securities and Exchange Commission back in June. The lawsuit aims to investigate whether Binance.US has established a backdoor mechanism to exert control over user assets, drawing parallels to incidents previously encountered at FTX.

Image by pixabay

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