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Changpeng Zhao resigns as the Chairman of Binance.US board of directors

Binance.US will continue to be led by Norman Reed and their existing management team

Shashank Bhardwaj
Published: Nov 29, 2023 07:01:58 PM IST

Changpeng Zhao resigns as the Chairman of Binance.US board of directorsFounder and former CEO of Binance Changpeng Zhao. Image: Antonio Masiello/Getty Images

On November 28, Binance.US announced the resignation of Changpeng Zhao, the founder and former CEO of Binance, as chairman of the Binance.US board of directors. Zhao transferred his voting rights through a proxy, signifying a shift from involvement in governance to a purely economic interest in the company.

In an announcement on X, Binance.US expressed gratitude to CZ, “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 for US customers seeking a superior crypto trading experience.”

The move comes after Zhao pleaded guilty to federal charges imposed by the US Department of Justice (DoJ) and agreed to pay a $4.3 billion fine. In the same case, Binance agreed to pay $4.3 billion settlement charges for failing to adhere to anti-money laundering (AML) regulations and violating sanctions law.

On that note, Binance.US reminded its users that the exchange was not a party to the settlement between US officials, Binance and CZ. Nor did they have any outstanding enforcement matters with the DOJ, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Commodity Futures Trading Commission (CFTC).

Binance.US is a separate crypto exchange created for users within the United States. It was launched to serve US customers and follows US rules and regulations. While it shares a brand and industry-leading technology stack, it operates independently from its parent company, Binance.

While Binance.US is not part of last week’s settlement, it faces a lawsuit filed by the US SEC against Binance and CZ. The SEC is investigating whether Binance.US had a backdoor to control customer assets like the bankrupt fraud-ridden crypto exchange FTX.
Clarifying what’s next for Binance.US after CZ’s exit, the tweet stated, “Binance.US continues to be led by Norman Reed and our existing, experienced management team. We are well capitalised to continue to build and grow our platform and to do so with renewed clarity and momentum while maintaining the same customer-first commitment.”

Zhao’s departure from Binance.US signals a new chapter for both parties. Binance.US will continue to explore a new growth trajectory while Zhao explores new avenues for himself.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash