Changpeng Zhao resigns from board of Binance.US Changpeng Zhao resigns from board of Binance.US

Changpeng Zhao resigns from board of Binance.US

A proxy voting arrangement will allow CZ to retain financial interests in Binance.US but strips him of voting rights.

Changpeng Zhao resigns from board of Binance.US

Web Summit / CC BY 2.0 DEED / Remixed by CryptoSlate

Changpeng  Zhao has stepped down from his position as chairman of the board of directors for Binance.US, according to a Nov. 28 announcement. The resignation comes just over a week after CZ stepped down from his role at Binance Holdings as part of the exchange’s settlement with the U.S. Department of Justice (DOJ).

Proxy voting

Zhao’s departure from the Binance.US board marks the final step in his transition to a life beyond direct involvement in Binance’s day-to-day operations. He will retain an economic interest in Binance.US but no longer participate in its governance, having transferred his voting rights through a proxy arrangement.

Binance.US expressed deep gratitude to CZ for his years of leadership and guidance, noting that his support was instrumental in establishing Binance.US as a premier platform for crypto trading in the U.S.

Settlement unrelated to Binance.US

Binance.US emphasized its operational independence, especially in light of recent settlements involving its international counterpart.

The company assured its customers and stakeholders that it is not involved in any pending enforcement actions with major U.S. regulatory bodies such as the DOJ, Financial Crimes Enforcement Network (FinCEN), Office of Foreign Assets Control (OFAC), or the Commodity Futures Trading Commission (CFTC).

It also added that it remains fully operational and offers its customary range of products and services.

Stuck in the U.S.

Meanwhile, U.S. prosecutors have filed a motion to keep Zhao in the U.S. until his sentencing is finalized in early 2024, arguing that he is a flight risk due to his vast wealth and resources. They further argued the government could not guarantee his return, as his adopted home country, the United Arab Emirates, does not have an extradition treaty with the United States.

On the other hand, Zhao’s defense team argued that he did not intend to avoid sentencing and would appear at the appointed date. They highlighted that Zhao voluntarily appeared in court last week to enter his guilty plea, indicating his willingness to accept responsibility for his wrongdoings.

Despite an earlier ruling that would have allowed Zhao to return to the UAE until sentencing, a federal judge reversed that decision on Nov. 27.

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