Having transferred his voting rights via a proxy, Zhao consented to resign as chair.
The U.S. DOJ has attempted to prevent CZ’s return to the UAE until his sentencing.
Along with his resignation as CEO of Binance, Changpeng Zhao (CZ) will also be stepping down as head of the board of directors for Binance US, an exchange established in the U.S.
Following the announcement of a $4.3 billion settlement between U.S regulators and Binance and CZ on November 21, Binance US took to Twitter on November 28 to inform followers that the exchange was not involved in the deal. Having transferred his voting rights via a proxy, Zhao consented to resign as chair and “will no longer be involved” in Binance U.S administration.
Regulatory Scrutiny Continues
In addition, the trading platform made its position clear about the landmark deal that the international exchange negotiated with the US DOJ, FinCEN, and the CFTC; this settlement is part of the landmark settlement process. According to Binance U.S, the company is not involved in the $4.3 billion settlement and disputes with these regulatory agencies over enforcement do not exist at this time.
Many in the crypto community saw Binance U.S’s move as an attempt to shield CZ from potential regulatory scrutiny, which might lead to a tightening of restrictions in the future. U.S. securities regulators are looking for signs of wrongdoing at Binance U.S in anticipation of a harsher crackdown on the company in the wake of the Department of Justice’s investigation.
The U.S. DOJ has attempted to prevent CZ’s return to the UAE until his sentencing for AML offenses, but his lawyers are vehemently contesting the move. The lawyers for CZ urged Richard Jones, a United States District court judge, to maintain the bail conditions set by a magistrate court. With these conditions, CZ might go back to the UAE while the penalty is pending.