Binance.US Exploring Options To Cut CZ’s Stake
Binance.In what appears to be an effort to improve the company’s reputation and standing with US regulators, US and CEO Changpeng Zhao are actively exploring strategies to reduce his dominant ownership stake in the company.
Zhao has been attempting to sell a portion of his stake since the summer of 2022, according to The Information, citing two unnamed sources.
The CFTC filed a lawsuit against Binance and Zhao in March.
The CFTC claimed Binance ran a “illegal” exchange and had a “sham” compliance program. It accused Binance, Zhao, and the former compliance chief of willfully violating US law and engaging in activities outside the US to avoid CFTC regulations.
These activities involved structuring entities and transactions to bypass registration requirements and providing US customers with instructions on circumventing compliance controls.
(With inputs from Shikha Singh)
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