Binance.US, the American arm of Binance, came to X on Tuesday to clarify their independent operation from their parent company. The message, intended for their community, explains that Binance.US was launched to cater to the United States market and thereafter follows the country’s rules and regulations.
This announcement coincided with the Securities and Exchange Commission’s continued efforts to probe evidence of fraudulent activities involving Binance.US. The Wall Street Journal reported on Monday that Binance’s co-founder and former CEO, Changpeng ‘CZ’ Zhao, may have a backdoor to manage assets stored on its American unit.
Binance.US highlighted that it remains fully operational and is not a party to the legal settlements involving Binance and its co-founder. They added that they do not have any outstanding enforcement matters with the U.S. Department of Justice, the Commodity Futures Trading Commission, the Financial Crimes Enforcement Network, or the Office of Foreign Assets Control.
Further emphasizing Binance.US and Binance’s separate operations, the former revealed that Zhao has decided to step down from his role as chairman of the board of directors. Zhao has supposedly transferred his voting claims through a proxy arrangement. The tweet also states:
His [Zhao’s] interest in the company is purely economic, and he will no longer be involved in our governance.
Nonetheless, the largest crypto exchange’s American unit underscored its gratitude to Zhao for his guidance, counsel, and support in helping establish Binance.US. The tweet also highlighted that Norman Reed leads the crypto branch.On November 21, Zhao pleaded guilty in a Seattle court to one count of willfully causing Binance to fail to enact an effective anti-money laundering program. Zhao is awaiting his sentencing, scheduled for February 23, 2024.
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