Binance Founder CZ Steps Down from Board of Directors
Binance founder and former CEO, Changpeng “CZ” Zhao, has announced his decision to step down from the company’s board of directors following his guilty plea to federal charges. In a statement released by Binance.US, it was revealed that CZ will no longer be involved in the governance of the company and has transferred his voting rights through a proxy arrangement. The post expressed gratitude for CZ’s guidance and support in establishing Binance.US as a leading destination for US customers.
Consequences and Penalties
As a result of the guilty plea, Binance has been ordered to pay $4.3 billion in penalties and forfeitures. The company is required to exit the US market and comply with reporting and monitoring requirements outlined by the US Department of Justice. CZ also resigned from his position as CEO when the charges were announced. A federal judge has ruled that CZ must remain in the United States until his sentencing in February 2024.
Ongoing Investigations
The guilty plea concludes a five-year investigation by the US Department of Justice into Binance. However, CZ’s legal troubles may not be over yet. The Securities and Exchange Commission (SEC) is reportedly still investigating whether Binance had undisclosed access to customer funds. Binance.US attorneys have requested that the SEC investigation be halted due to a lack of evidence of asset misuse. A federal judge has set a deadline for both sides to resolve their evidentiary differences by December 15th, 2023.
Hot Take: CZ Steps Down Amidst Legal Troubles
Changpeng “CZ” Zhao’s decision to step down from Binance.US’s board of directors comes after his guilty plea to federal charges and marks an important development in the ongoing legal saga. While Binance faces significant penalties and an exit from the US market, CZ’s resignation raises questions about the future of the company. With ongoing investigations by the SEC, the outcomes of these legal proceedings will continue to impact Binance and its reputation. The crypto community will be closely watching for updates on this high-profile case.
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