Binance.US Removes Changpeng Zhao (CZ) As Chairman Of The Board Of Directors

YEREVAN (CoinChapter.com) — Days after Binance Founder Changpeng Zhao (CZ) plead guilty to several charges, Binance.US, his company’s US operation, has pushed him out as chairman of the board of directors.

Changpeng Zhao resigns as chair of Binance.US

Earlier this month, Changpeng Zhao agreed to pay a $50 million fine as part of his guilty plea. He faces money laundering charges under the Bank Secrecy Act. Binance committed to shelling out $4.3 billion as part of the deal. Zhao also resigned as the CEO of Binance Global.

Now, he has stepped down from his role as the Chairman of Binance Holdings Ltd, the US offshoot of the largest cryptocurrency exchange by volume.

According to an official announcement, Zhao has also transferred his voting shares through a proxy arrangement.

“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 rights through a proxy arrangement, whereby his interest in the company is purely economic and he will no longer be involved in our governance,” 

Binance.US announced.

Following his guilty plea, Zhao was released on bail with the permission to leave the country. His wife and children live in the UAE, where he wanted to return. However, upon objections from the US Department of Justice (DOJ), District Judge Richard Jones stayed the earlier ruling.

“It is ORDERED that the condition permitting Defendant to return to the UAE pending sentencing is STAYED until such time as this Court resolves the Government’s motion for review,” the judge said in his ruling.

He may have to remain in the US until his sentencing scheduled for February 2024. 

Zhao now faces the possibility of serving an 18-month long jail time. However, some speculate that his sentencing could be for a longer term-up to 10 years. Should this happen, he has the right to appeal the ruling.

The former CEO of Binance has already agreed not to take up the role of the company’s CEO for at least three years. His legal team maintains that he is not a flight risk and has already demonstrated a willingness to cooperate with authorities.