Changpeng “CZ” Zhao, former CEO of major cryptocurrency exchange Binance, will also leave his position as chairman of the board of directors of US-based exchange Binance.US.
In a post from X (formerly Twitter) on November 28, Binance.US remembered users the exchange was not part of the $4.3 billion deal Among US officials, Binance and CZ announced on November 21. However, Zhao agreed to step down as chairman and will "no longer participate" in the governance of Binance.US, transferring the voting rights to him via proxy.
“We are exceptionally grateful to CZ for his guidance and advice over the years,” the exchange said. “Binance.US continues to be led by Norman Reed and our existing experienced management team.”
We wanted to provide an update on the https://t.co/AZwoBOgsqS community in light of last week's news about CZ and https://t.co/IZwa5M2U8b.
How do you know, https://t.co/AZwoBOgsqS was launched with the express purpose of serving United States customers in accordance with all…
- Binance.US (@BinanceUS) November 28, 2023
At the time of publication, Zhao had not publicly commented on his decision to resign. His last response in X saying he had "a lot more free time" since stepping down as CEO of Binance.
Related: Binance CEO Outlines Plan for Crypto Exchange After CZ Resigns
On November 21, Zhao pleaded guilty to a felony charge for failing to maintain an effective anti-money laundering program during his tenure as CEO of Binance. The court is currently weighing whether CZ will be allowed to travel to the United Arab Emirates while awaiting sentencing. The former CEO of Binance could face up to 18 months in prison.
Binance.US, although not part of the settlement with the US Department of Justice, faces a lawsuit presented in June by the Securities and Exchange Commission against the crypto exchange, Binance and CZ. The commission was reportedly investigating whether Binance.US had a backdoor to control users' assets, similar to what happened on FTX.
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