Changpeng “CZ” Zhao, the former Chief Executive Officer of the renowned crypto exchange Binance, has stepped down from his position as the chairman of the board at Binance.US, the American subsidiary of the exchange. A recent update on X (formerly Twitter) on November 28 revealed that Binance.US was not involved in the $4.3 billion agreement made on November 21 between U.S. authorities, Binance, and Zhao. Post-settlement, Zhao has chosen to step away from his chairmanship and end his governance involvement in Binance.US, transferring his voting rights through a proxy.
Binance.US acknowledged Zhao’s valuable guidance and leadership, confirming that the exchange will persist under the leadership of Norman Reed and the existing management team. Zhao himself has remained silent publicly about his resignation. His last post on X indicated he has been enjoying more free time since resigning as Binance’s CEO.
On November 21, Zhao pleaded guilty to a felony for not maintaining an effective Anti-Money Laundering program during his time at Binance. The court is currently considering allowing CZ to travel to the United Arab Emirates as he awaits his sentencing, which could be up to 18 months in prison.
Binance.US, though not a part of the settlement with the U.S. Justice Department, is embroiled in a lawsuit filed by the Securities and Exchange Commission in June. The lawsuit involves Binance, Binance.US, and Zhao, and investigates claims of a hidden control mechanism over user assets at Binance.US, a situation similar to that which occurred at FTX.
