CZ will transfer his voting shares to a proxy, the U.S. affiliate of the global exchange said.
Binance founder and former CEO Changpeng 'CZ" Zhao is stepping down as chairman of the global exchange's U.S. affiliate's board.
Binance.US announced in a tweet Tuesday that while it is not a part of last week's massive multibillion-dollar settlement between Binance and various U.S. regulators and law enforcement entities, Zhao will transfer his voting rights to a proxy.
"That said, 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," the tweet said.
Binance was accused of operating in the U.S. without registering with any appropriate entities, ultimately allowing U.S. crypto investors to transact with Binance customers from sanctioned regions. The company agreed to pay $4.3 billion, make a "complete exit" from the U.S. as part of its settlement, and accept Zhao's resignation as CEO.
A senior Treasury official told reporters that Binance.US was not part of Binance's settlement as it was a registered business.
While Binance.US is not part of last week's settlement, it's still facing a U.S. Securities and Exchange Commission enforcement action over offering what the regulator deemed are unregistered securities to U.S. investors. That case, which also includes Binance and Zhao, is ongoing.
"Binance.US continues to be led by Norman Reed and our existing, experienced management team. We are well capitalized to continue to build and grow our platform and to do so with renewed clarity and momentum, while maintaining the same customer first commitment," the tweet concluded.
