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- CZ resigns from his position as chairman a few days after saying goodbye to Binane.com
- This decision would reduce his role in the crypto exchange to that of an economic one
Days after Changpeng Zhao, also known as CZ, stepped down as CEO of the world’s largest exchange – Binance, another similar move followed. In an announcement made today, CZ will step down as Chairman of the Board of Directors of Binance.US, the US affiliate of the global crypto exchange.
The announcement follows CZ’s decision to plead guilty to money laundering charges filed against him and the crypto exchange by the US government last week. And one of the settlement terms for Binance was to accept CZ’s resignation. In addition, the global entity had to ban him from management or operational positions for a period of three years.
However, the US government’s case was exclusively against CZ and the global crypto exchange – Binance.US. This aspect was even made clear during the press conference on the prosecution.
CZ ends its direct relationship with Binance.US
In a post on X, formerly Twitter, Binance.US stated that CZ’s voting rights would be transferred “through a proxy agreement.” This would reduce his interest in the company to a purely economic interest and would not be part of the governance aspects.
The US cryptocurrency exchange also reiterated that it was not part of the settlements with the US government, which cost the global entity more than $4 billion. Additionally, the platform also claimed to have no “open enforcement cases with the DOJ, FinCEN, OFAC, or CFTC.”
However, the US entity does have an ongoing case with the US Securities and Exchanges Commission (SEC). The commission has alleged securities law violations. And according to the latter report by the Wall Street Journal, the committee looked for evidence of possible fraud at Binance.US. Importantly, the committee is investigating whether or not Binance.US had a backdoor similar to FTX, a now bankrupt crypto exchange.
The message continues read,
We are extremely grateful to CZ for his guidance and advice over the years. We were made possible with his support Binance.US as a destination of choice for US customers looking for a superior crypto trading experience.
