Crypto exchange Binance US has announced that Changpeng Zhao (CZ) will resign as chairman of the board and transfer his voting rights — but in its hurry to point out that it’s not under scrutiny by US agencies like the CFTC, Binance US forgot to mention its own SEC enforcement action.
“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 right through a proxy arrangement,” Binance US wrote on X on Tuesday, “whereby his interest in the company is purely economic and he will no longer be involved in our governance.”
According to the announcement, the US-based crypto exchange remains “fully operational” and “well capitalized” after CZ’s decision to sever ties — even claiming the event has provided “renewed clarity and momentum.”
The news comes after CZ and Binance pled guilty to federal crimes and the 46-year-old was required to step down as CEO. Binance US wasn’t the subject of that particular Securities and Exchange Commission’s (SEC) lawsuit — both entities claim to operate independently.
The exchange was quick to point this out in its announcement post. “Binance US is not a party to the settlements announced last week, nor do we have any outstanding enforcement matters with the DOJ, FinCEN, OFAC, or CFTC,” its post read.
However, Binance US seems to have forgotten that it faces its own SEC enforcement action for offering unregistered securities — in which Binance and CZ are also named. The case is ongoing.