On Tuesday, Binance US, the American branch of Binance.com, revealed that Changpeng Zhao (CZ), its former CEO, has relinquished his position as chairman of the board with immediate effect. The announcement emphasized that Binance US is fully functional and operates independently from Binance.com.
Changpeng Zhao Steps Down as Binance US Chairman
The update from Binance US comes in the wake of a recent agreement between Binance.com and the U.S. Department of Justice. This settlement also involved 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 involved in last week’s settlements and currently has no pending enforcement issues with the DOJ, FinCEN, OFAC, or CFTC. The company underscored its independence and separate operation from Binance.com. Despite this autonomy, CZ, the ex-chief of Binance, is departing from the board of the U.S. exchange.
The Tuesday announcement stated, “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, agreeing to step down as Binance’s CEO and to pay a $50 million penalty. Richard Teng has stepped in as the new CEO of Binance, which will now undergo rigorous monitoring by federal agencies. Binance US, a part of the global cryptocurrency exchange behemoth, reiterates its dedication to progress independently.
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.”
What do you think about CZ stepping down as chairman of Binance US? Share your thoughts and opinions about this subject in the comments section below.