Binance CEO CZ is allegedly trying to sell shares of Binance.US, the US arm of the exchange. The main purpose of this move, according to reports, was to reduce regulatory pressure.
CZ tries to sell Binance US shares
New allegations are emerging about Binance CEO Changpeng Zhao, who is not on the agenda in the USA. Citing two anonymous sources, The Information reports that CZ is looking for ways to sell some of its Binance.US shares.
According to sources, the founder of the Binance ecosystem has been pursuing this search since the summer of 2022. Zhao wants to increase his reputation with regulatory authorities by selling his shares on the stock exchange established in the USA.
https://twitter.com/theinformation/status/16567938112423802885
cryptocoin.com As we reported, the US regulator CFTC sued Binance and CZ at the end of March. In this case, the CFTC accused the exchange and its founder of making unauthorized transactions.
After these events, Binance US gave up on the Voyager acquisition. Also, in the news shared recently, it is stated that the US arm of the stock market is struggling to find investors due to regulatory pressure. So far, there has been no response from Changpeng Zhao and Binance to the allegations shared by The Information.
Changpeng Zhao’s latest move was to reduce regulatory pressure
Crypto exchange Binance.US and its founder Changpeng Zhao (CZ) are reportedly looking for ways to reduce his stake in the company amid harsh scrutiny from US federal regulators last year. In March, the CFTC sued Binance and CZ for operating an “illegal” exchange with a “fake” compliance program.
The firm was accused of deliberately evading U.S. law while “executing a calculated regulatory arbitrage strategy for its business interests.” In response to the lawsuit, Binance claimed regulatory compliance, saying, “We have implemented a strong ‘three lines of defense’ approach to risk and compliance.”
CZ, the majority shareholder of BinanceUS, will reportedly have problems obtaining regulatory licenses. They are now exploring ways to reduce their stake and influence on the company. However, Binance refuses to make any comments on the matter.
Followed by the SEC
The SEC targets US-based crypto exchanges to put them under the same stringent regulations as banks and exchanges. Major players Coinbase, Gemini, Ripple and Galaxy Digital have been under the spotlight recently. These companies are now making plans to move abroad, taking action against the SEC’s practices.
In the cryptocurrency market where the war continues, there are other major exchanges such as Kraken and Bittrex. These exchanges have completely or partially shut down their services in the US. The SEC also sued Paxos, the issuer of stablecoin BUSD, causing the BUSD to cease to be issued. Finally, it blocked approval of BinanceUS’s bid for the assets of bankrupt crypto lending firm Voyager Digital.
