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Changpeng Zhao (CZ) Steps Down as Chairman of Binance US in Response to Recent Settlement

Author

Jay Solano

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2 mins
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Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update

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Binance US, the American branch of Binance.com, has announced that Changpeng Zhao (CZ), its former CEO, has resigned immediately as board chairman. The statement emphasized that Binance US operates independently of Binance.com and is fully functional.

This announcement follows a recent settlement between Binance.com and the U.S. Department of Justice (DOJ) involving various U.S. entities, including the Treasury’s Office of Foreign Assets Control (OFAC), the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN).

Binance US clarified that it was not part of these settlements and currently faces no pending enforcement issues with the DOJ, FinCEN, OFAC, or CFTC. The company stressed its autonomy and separate operations from Binance.com. Despite this independence, CZ, the former Binance CEO, has decided to step down from the board of the U.S. exchange.

The announcement explained, “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.”

Last week, CZ admitted to violating the Bank Secrecy Act, leading to his resignation as Binance’s CEO and a $50 million penalty. Richard Teng has assumed the role of the new CEO of Binance, which will now undergo rigorous monitoring by federal agencies. Binance US, as part of the global cryptocurrency exchange, reaffirms its commitment to independent progress.

Binance US added, “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.”