In the United States, the former CEO of Binance is facing one criminal count as part of a settlement with local authorities and regulators.
The former CEO of well-known cryptocurrency exchange Binance, Changpeng “CZ” Zhao, has announced his resignation as chair of the board of directors of the US-based exchange. The USA.
Reminding users that the exchange was not a party to the $4.3 billion settlement between U.S. officials, Binance and CZ announced on Nov. 21, Binance.US posted the reminder on X (previously Twitter) on Nov. 28. Zhao did, however, consent to give up his position as chair and state that he “will no longer be involved” with Binance.US’s management; his voting rights will be transferred via a proxy.
The statement read, “We truly value CZ’s guidance and leadership over the years. “Binance.”Norman Reed and our current group of seasoned managers continue to lead the US.
Zhao had not made any public remarks regarding his decision to resign at the time of publication. After stepping down as CEO of Binance, he claimed to have “a lot more free time” in his most recent response on X.
Zhao entered a guilty plea to one felony count on November 21 for failing to keep up a successful anti-money laundering program while serving as the CEO of Binance. Currently, the court is debating whether to grant CZ permission to visit the United Arab Emirates prior to his punishment. The former CEO of Binance may spend up to 18 months in prison.
While Binance.US was not a party to the settlement with the US Justice Department, the Securities and Exchange Commission filed a complaint against the crypto exchange, Binance, and CZ in June. The commission was apparently looking into whether Binance.US had a backdoor to control user assets, similar to what happened at FTX.
Conclusion
Changpeng Zhao’s decision to step down as the US Chair of Binance marks a significant moment in the company’s history. The cryptocurrency community will closely watch how Binance evolves under new leadership and adapts to the changing regulatory environment, shaping the narrative of one of the most influential players in the crypto industry.
