CZ Steps Down as Chair of Binance.US Board
Changpeng “CZ” Zhao, the former CEO of Binance, has announced that he will step down from his position as chair of the board of directors for Binance.US. This decision comes after the $4.3 billion settlement between U.S. officials, Binance, and CZ was announced on November 21.
Binance.US Not Involved in Settlement
Binance.US clarified that it was not a party to the settlement and emphasized that CZ’s resignation as chair does not impact the operations of the exchange. Norman Reed and the existing management team will continue to lead Binance.US.
Zhao’s Silence on Decision
As of now, CZ has not publicly commented on his decision to step down. His last response on X indicated that he has more free time since resigning as Binance CEO.
Felony Count and Potential Prison Sentence
Zhao pleaded guilty to one felony count for failure to maintain an effective Anti-Money Laundering program during his tenure as Binance CEO. The court is currently considering whether CZ can travel to the United Arab Emirates while awaiting sentencing, which could result in up to 18 months in prison.
Lawsuit Against Binance.US
Binance.US is facing a lawsuit filed by the Securities and Exchange Commission (SEC) against the crypto exchange, Binance, and CZ. The SEC is investigating whether Binance.US had a backdoor to control user assets similar to FTX.
Hot Take: CZ’s Resignation Signifies Accountability
CZ’s decision to step down as chair of the board of directors for Binance.US demonstrates a commitment to accountability in the wake of the settlement. This move aims to separate CZ from the governance of Binance.US and allows the exchange to continue operating under its existing management team. As the legal proceedings continue, the crypto community will closely watch the outcomes and potential implications for both CZ and Binance.US.
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