United

Dubai

<p>Binance founder and former CEO, Changpeng “CZ” Zhao, has stepped down from the company’s board of directors following his guilty plea to several federal charges last week.</p> 
<h2 id="cz-steps-down">“CZ” steps down</h2> 
<p><br> Zhao “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,” <a href="https://twitter.com/BinanceUS/status/1729530641526435859">read a statement from Binance.US posted to X Tuesday morning</a>.</p> 
<p>“We are exceptionally grateful to CZ for his guidance and counsel over the years,” the post on X continued. “With his support, we have established <a href="https://t.co/HrbX93eYuS">Binance.US</a> as a destination of choice of U.S. customers seeking a superior crypto trading experience.”</p> 
<p>News of Zhao’s resignation from Binance.US’s board of directors comes nearly a week after he pleaded guilty to violating the Bank Secrecy Act, violating the International Emergency Economic Powers Act, and failing to register Binance as a money transmitting business.</p> 
<h2 id="binance-coughs-up-billions">Binance coughs up billions</h2> 
<p><br> As a consequence, Binance must pay $4.3 billion in penalties and forfeitures and make a “complete exit” from the U.S. market while following reporting and monitoring requirements<a href="https://cryptonews.com/news/doj-holds-press-conference-on-binance-cz-announces-new-ceo.htm"> set forth by the U.S. Department of Justice</a>. Moreover, <a href="https://cryptonews.com/news/binance-ceo-changpeng-cz-zhao-resigns-and-pleads-guilty-whats-going-on.htm">Zhao resigned from his role as CEO</a> as the Department of Justice announced the charges against him.</p> 
<p>On Monday, a federal judge ruled that Zhao, a resident of Dubai, <a href="https://cryptonews.com/news/u-s-judge-binance-founder-changpeng-cz-zhao-cannot-leave-the-u-s-for-the-time-being-whats-going-on.htm">must stay in the United States until his sentencing</a> on February 23rd, 2024.</p> 
<p>Previously, his attorneys argued that not being able to return to Dubai would be “punitive” for his family and partner, with whom he welcomed a third child with in recent months. However, prosecutors argued that the move could be risky given the fact that the United Arab Emirates has no extradition treaty with the U.S.</p> 
<h2 id="what-to-expect-next">What to expect next</h2> 
<p><br> Zhao’s guilty plea marks the end of a five-year-long Department of Justice investigation into the crypto exchange. However, the Binance founder’s legal troubles may be far from over.</p> 
<p>According to a recent report from The Wall Street Journal, the Securities and Exchange Commission (SEC) is still investigating whether Binance had secret access to customer funds.&nbsp;</p> 
<p>At a hearing on Monday in federal court, Binance.US attorneys formally requested that the ongoing SEC investigation be halted, citing a lack of evidence that assets were misused.</p> 
<p>A federal judge has ordered both the defense and prosecution to settle their evidentiary differences by December 15th, 2023, at the latest.</p>

Changpeng “CZ” Zhao Steps Down From Binance.US Board of Directors

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Cryptonews.com

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