Binance.US Seeking to Reduce Changpeng Zhao’s Stake in Response to Regulatory Scrutiny
Binance.US, along with its founder and majority owner Changpeng Zhao, is said to be considering different approaches to decrease Zhao's ownership in the cryptocurrency exchange, as per an article published by The Information.
Sources familiar with the situation disclose that Zhao has been actively pursuing the sale of a portion of his stake since the previous summer.
This development comes in the wake of the U.S. Commodity Futures Trading Commission (CFTC) initiating legal action against Binance and its CEO, Zhao, accusing them of running an “illegal” exchange and maintaining a compliance program that was labeled a “sham.”
The lawsuit, filed in March, alleges that Binance and Zhao deliberately evaded U.S. laws while employing a calculated strategy of regulatory arbitrage for their own commercial advantage.
The report suggests that the inclusion of Zhao in the CFTC lawsuit has raised concerns among Binance.US executives regarding the company’s ability to obtain certain regulatory licenses in the United States as long as he remains the majority owner.
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In light of these circumstances, Binance.US leaders have engaged in discussions regarding the potential benefits of reducing Zhao’s stake.
One key aspect under consideration is how such a move might enhance the company’s standing and reputation in the eyes of U.S. regulators.
By exploring options to decrease Zhao’s ownership, Binance.US aims to address these concerns and potentially strengthen its position in the U.S. market. The company’s executives believe that reducing Zhao’s stake could positively impact their interactions with regulatory authorities and increase the likelihood of obtaining the desired licenses.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
