CZ steps down as Binance.US board chairman
Quick Take
- Changpeng ‘CZ’ Zhao stepped down as the chairman of the board of directors for Binance.US.
- He transferred his voting power through a proxy agreement, removing his influence on the firm’s governance.
Changpeng 'CZ' Zhao has stepped down as chairman of the board of directors for Binance.US, the crypto exchange's American arm, the company said on Tuesday.
The former Binance CEO has transferred his voting rights through a proxy agreement, the firm added. The move removes Zhao's influence from Binance.US's governance and renders his interest in the firm "purely economic."
Zhao pleaded guilty in a Seattle court last week to violating, and causing a financial institution to violate, the Bank Secrecy Act. He also agreed to pay a $50 million fine and stepped down as CEO of Binance.
"Binance.US is not a party to the settlements announced last week, nor do we have any outstanding enforcement matters with the DOJ, FinCEN, OFAC, or CFTC," the company wrote on the social media platform X. It said that it remains fully operational.
"Binance.US continues to be led by Norman Reed and our existing, experienced management team," the company added. "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."
Court sentencing
A judge said yesterday that Zhao will have to stay in the U.S. ahead of his sentencing in February, at least until a further review is conducted.
Judge Richard Jones of the U.S. District Court for the Western District of Washington in Seattle ordered that a condition that would have allowed Zhao to return to his home in United Arab Emirates before his sentencing be "stayed until such time as this Court resolves the Government’s motion for review," according to a court filing on Monday.
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