Binance founder and former CEO Changpeng ‘CZ” Zhao will step down as chairman of the board of directors of the global exchange’s US subsidiary.
Binance.US announced in a tweet on Tuesday that, while not part of last week’s massive multi-billion dollar settlement between Binance and several US regulators and law enforcement entities, Zhao will transfer his voting rights to a proxy.
“That said, as CZ transitions into 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 agreement, so his interest in the company is purely economic and will no longer participate in our governance,” the tweet said.
Binance was accused of operating in the US without registering with any appropriate entity, ultimately allowing US crypto investors to transact with Binance customers from sanctioned regions. The company agreed to pay $4.3 billion, make a “complete exit” from the United States as part of its deal and accept Zhao’s resignation as CEO.
A senior Treasury official told reporters that Binance.US was not part of the Binance deal as it was a registered company.
While Binance.US is not a party to last week’s settlement, it still faces enforcement action from the US Securities and Exchange Commission for offering what the regulator considered unregistered securities to US investors. That case, which also includes Binance and Zhao, is ongoing.
“Binance.US continues to be led by Norman Reed and our experienced existing management team. We are well capitalized to continue building and growing our platform and to do so with renewed clarity and momentum, while maintaining the same customer commitment.” concluded the tweet.
