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CZ Steps Down as Binance.US Chair Amid Court Order Restricting His Travel
- Changpeng Zhao (CZ), the former CEO of Binance, is currently barred from leaving the United States due to concerns that he may flee the country to avoid prosecution.
- Binance.US has severed its ties with CZ due to the ongoing investigation and his guilty plea bargain.
- The company thanked CZ for his guidance and counsel over the years.
Changpeng Zhao (CZ), former CEO of the world’s largest crypto exchange Binance, has endured a tough few weeks following a crackdown by the United States Department of Justice (DoJ). CZ pleaded guilty to U.S. anti-money laundering laws and reportedly was in charge of Binance while terrorist organisations used the platform to transact assets. As part of his plea bargain with prosecutors, CZ paid US$ 50 million (AU$ 75 million) in fines and agreed to step down as the CEO of both Binance and now Binance.US. Although CZ desires to stay attached to the company he built from the ground up, it’s possible future revelations will resolve with the founder being ousted entirely.
Prosecutors Have Barred CZ From Returning Home
Changpeng Zhao is currently domiciled in the United Arab Emirates (UAE). Although the ex-Binance CEO may end up avoiding jail time altogether, a federal judge ruling in Seattle determined he is not allowed to return home yet.
Prosecutors in the case argued that allowing CZ to return home posed a “substantial risk” to the legal battle. Because of CZ’s substantial assets held in the UAE, paired with the difficulty the American government may have extraditing him from a foreign country, means that there’s a chance CZ could escape justice entirely if he were to go home.
Binance.US Statement Provides Update
In a statement today, Binance.US’s official Twitter provided an update on the CZ situation. Until now, CZ had remained as the chair of the American arm of the Binance company, which remains independent from its global counterpart. While Binance.US was not involved with last week’s legal proceedings and has, as of present, not done anything illegal, the company has officially severed its ties with CZ due to the ongoing investigation.
Despite his mistakes, the company’s endorsement of CZ was glowing:
We are exceptionally grateful to CZ for his guidance and counsel over the years. With his support, we have established Binance.US as a destination of choice of U.S. customers…
Binance.US 
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
