Godfrey Benjamin
Binance co-founder Changpeng ‘CZ’ Zhao has stepped down from his role as the Chairman of Binance Holdings Ltd, the US offshoot of the global exchange.
CZ Transfers His Binance US Voting Rights
As the US affiliate revealed in its announcement to the community, Changpeng Zhao has not just agreed to step down from the board, he has also transferred his voting shares through a proxy arrangement.
“…as CZ transitions to life after Binance, he has decided to step down from his role as Chairman of our Board of Directors and transferred his voting rights through a proxy arrangement, whereby his interest in the company is purely economic and he will no longer be involved in our governance,” the announcement reads.
The trading platform also clarified its stance on the historic settlement inked by the global exchange with the United States Department of Justice (DOJ), the Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC). Binance US said it was not a party to the $4.3 billion settlement and that it currently has no pending enforcement issues to address with these regulatory bodies.
Addressing what the next phase in its growth looks like, the exchange said the transition in the global outfit has no impact on its operations as Norman Reed remains the exchange’s CEO backed by a list of experienced management team members. Binance US said it is well capitalized despite recent reports of reduced market share.
In all, Binance US said it is committed to its growth push as it attempts to solidify its compliance and business push.
Is Binance Founder’s Woes Compounding?
The announcement from Binance US has sent a mixed signal to the broader crypto ecosystem as many critics said the dissociation is to provide immunity as the regulatory crackdown on CZ might be heightened in due course. Already, his request to leave the US pending his sentence hearing has been denied.
In light of the DOJ Crackdown, the United States Securities and Exchange Commission (SEC) is already fishing for evidence of impropriety at Binance US to tighten its crackdown on the firm.
In all of this, the Binance founder has reiterated that he is “mentally stable” and in one of his recent posts on X, he has reiterated plans to focus on new research ventures with crypto funding.
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