- CZ, founder of crypto exchange Binance, stepped down as chairman of Binance’s US division after relinquishing his global CEO role as part of a plea deal with the DOJ.
- Binance ran into trouble with regulators worldwide for operating without proper licensing and oversight. The DOJ accused Binance of having major US operations while dodging regulation.
- With CZ sidelined and Binance paying nearly $1 billion in fines, the future of the once-influential crypto exchange is uncertain after avoiding regulations for so long.
Last week, as part of a plea deal with the Department of Justice, CZ stepped down from his role as CEO of Binance’s global operations. Now, he is also relinquishing his position as chairman of Binance’s US division.
According to a post on social media platform X, CZ retains an economic interest in Binance.US but has given up his voting rights via a proxy arrangement. He will no longer have any governance role at the US exchange.
Troubles with Regulators
CZ’s loss of influence comes after Binance ran into issues with regulators around the world for operating without proper licensing and oversight.
The DOJ accused Binance of having “substantial” operations in the US while avoiding regulatory scrutiny. As part of CZ’s plea deal, Binance paid nearly $1 billion in fines and agreed to strengthen its compliance programs.
An Uncertain Future
With its founder sidelined from decision-making, the future of the Binance crypto empire is unclear.
But for now, CZ’s fall from being one of crypto‘s most prominent entrepreneurs shows the risks of trying to avoid regulatory guardrails. For Binance and its founder, the chickens have finally come home to roost.