Key takeaways:
- The former chief executive officer of Binance, CZ, has also announced his resignation as head of the board of directors of Binance US.
- After stepping down as CEO of Binance, CZ claimed to have “a lot more free time” in his most recent response on X.
The former chief executive officer of the well-known cryptocurrency exchange Binance, Changpeng “CZ” Zhao, has also announced his resignation as head of the board of directors of Binance US.
Binance US reminded users on November 28 on X that the exchange was not a party to the $4.3 billion settlement that Binance and CZ announced on November 21 between US regulators.
CZ did, however, agree to give up his position as chair and state that he “will no longer be involved” with Binance US’s management; instead, he will be voting through a proxy.
The firm expressed its sincere gratitude to CZ for his years of mentorship and advice. The company went on to say:
“Binance.US continues to be led by Norman Reed and our existing, experienced management team.”
CZ has refrained from making any public remarks regarding his resignation. After stepping down as CEO of Binance, he claimed to have “a lot more free time” in his most recent response on X.
CZ 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 (UAE) prior to his punishment. The former CEO of Binance may spend up to 18 months behind bars.
Although Binance US was not a party to the settlement with the US Justice Department, it is still facing legal action from the Securities and Exchange Commission (SEC), which was launched against Binance and CZ, the cryptocurrency exchange, in June.
The US SEC is still looking for evidence that Binance US had a backdoor through which it could have been able to control user assets similarly to FTX, according to a Wall Street story that was published on November 27. The exchange was charged with sending customer money arbitrarily, allegedly even to Zhao’s Swiss-based Sigma Chain.
