- The media has learned that the board planned to eliminate the U.S. unit.
- The decision was blocked by the CEO of Binance.US, who feared possible adverse consequences, sources said.
CEO of cryptocurrency exchange Binance Changpeng Zhao planned to eliminate the U.S. unit to shield the global platform from regulatory pressure. This was reported by The Information, citing its sources.
According to the publication, the Binance.US board of directors, chaired by CZ, almost unanimously supported the idea. However, the division’s CEO Brian Schroeder blocked the decision.
Sources at the company say the CEO feared possible damage to both clients and the firm as a whole. It’s not known when exactly this happened. The article only claims that the meeting took place in 2023.
It is noteworthy that even before the SEC filed suit against Binance and Zhao personally, there were reports of plans by the US unit’s management to distance itself from CZ.
After the regulator’s appeal, Binance.US’s market share dropped significantly. It hit a two-year low in June 2023 and fell to 0.9 percent in July.
The firm has been forced to cut staff, which management attributed to cost optimization. In late July 2023, it was also reported that Binance.US allegedly engaged in fictitious trading to simulate high performance.
Neither Changpeng Zhao nor Binance.US has yet to comment on the situation.
Binance.US has not yet commented on the situation.