Changpeng “CZ” Zhao, the founder and former CEO of Binance, is resigning as chairman of Binance.US’s board of directors, the firm announced Tuesday.
According to a post on the social media platform X (formerly Twitter), CZ will no longer be involved in the governance of the exchange’s U.S. affiliate company after he transfers “his voting rights through a proxy arrangement,” although he will maintain his economic interest in the firm.
Binance.US said that Norman Reed will continue as Binance.US chief executive officer. The current management team will also remain in place.
The decision follows a week after CZ pleaded guilty to violating the U.S. Bank Secrecy Act and leading his company to breach the BSA. As part of the agreement, he stepped down as Binance chief executive officer and will pay a $50 million penalty. He was released on a $175 million personal recognizance bond, although prosecutors have asked a federal court to reverse that part of the agreement.
Binance agreed to pay $4.3 billion in penalties for breaking sanctions and money-transmitting laws as part of a separate settlement.
Despite sharing a brand and technology stack with Binance, Binance.US was not part of the settlement last week, although the U.S. Securities and Exchange Commission (SEC) has an ongoing lawsuit against Binance.US, Zhao and Binance over whether the three illegally listed unregistered securities to U.S. investors.
Unchained reached out to Binance.US for comment.