Regulators in Florida and Alaska said #Binance.US could no longer serve its residents after former CEO Changpeng Zhao’s guilty plea.
Binance.US, a cryptocurrency exchange embroiled in regulatory issues, is facing ongoing challenges from U.S. authorities following the admission of guilt by its former CEO Changpeng Zhao.
As reported by The Wall Street Journal on January 25, regulatory bodies in Florida and Alaska have informed Binance.US that it is prohibited from operating in these states.
The Alaska Division of Banking and Securities declined to renew Binance.US's license in January 2024, and attempts by Cointelegraph to get a comment from the agency were unsuccessful at the time this was reported.
The Florida Office of Financial Regulation has also acted against Binance.US, issuing an emergency order to suspend its money transmitter license. This action was taken a week after Zhao, also known as CZ, admitted to breaching U.S. Anti-Money Laundering regulations on November 21, 2023.
In December 2023, a U.S. federal court recognized Zhao's guilty plea to a violation of the Bank Secrecy Act. Following this, Zhao resigned from his position at Binance.US and arranged for his voting rights to be assigned via a proxy agreement, thereby relinquishing his control over the company's management.
Despite these developments, Binance.US has continued its operations in the U.S. On November 28, the exchange affirmed its commitment to maintaining its standard offerings and services to customers.
Furthermore, Binance.US reached settlements with Arkansas, Illinois, and South Dakota in late December, allowing it to continue its operations in these states, on the condition that the transfer of Zhao’s voting rights is made permanent.
After his guilty plea, Zhao sought to use his $4.5 billion Binance.US stake as collateral for permission to travel to the United Arab Emirates. However, his request was denied by Judge Richard Jones in a private hearing on December 29, according to court documents.
Zhao is scheduled for sentencing on February 23, 2024, and could face up to 18 months in prison.
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