Former Binance CEO Changpeng Zhao made a deal with US regulators and stepped down as CEO. As part of this agreement, the United States faces serious charges. Following these developments, CZ also resigned from the presidency of Binance.US. On the other hand, the SEC is investigating whether Binance.US has a backdoor incident similar to that of FTX.
BinanceUS. He thanked CZ and released a statement
As you follow from Kriptokoin.com, the drama around Binance, the giant crypto exchange, continues. As CEO, Richard Teng rolled up his sleeves to bring the exchange into compliance with the regulatory framework. However, past baggage continues to put pressure on the stock market. Additionally, the lawsuit against former CEO Changpeng Zhao (CZ) is not over yet. While the lawsuit continues, CZ will also leave his position as chairman of the board of directors of Binance.US.
In a Nov. 28 However, he announced that Zhao had agreed to resign as president. He also noted that CZ will “no longer be involved” in the management of Binance.US by transferring his voting rights to an attorney. In this context, the stock exchange made a long post in which it also thanked CZ:
We are extremely grateful to CZ for his guidance and counsel over the years. Binance.US continues to be led by Norman Reed and our existing, experienced management team.
https://twitter.com/BinanceUS/status/1729530641526435859
There is a possibility of prison sentence for the former CEO of Binance!
At press time, CZ had not made a public statement regarding his decision to resign. In his latest post on social media platform On November 21, Zhao pleaded guilty to one count of failing to maintain an effective Anti-Money Laundering program during his tenure as CEO. The court is currently considering whether CZ will be allowed to travel to the United Arab Emirates while awaiting sentencing. Former CEO CZ could face up to 18 months in prison.
SEC investigating FTX-like backdoor
Meanwhile, Binance’s US arm is not a party to the agreement with the US Department of Justice. However, it is facing a lawsuit filed against the crypto exchange and CZ by the U.S. Securities and Exchange Commission (SEC) in June. The SEC is reportedly investigating whether Binance.US has a backdoor to control user assets, similar to what happened with FTX.
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