Binance.US explores ways to cut founder Zhao’s majority stake: report

Published Fri, May 12, 2023 · 08:05 AM

In March, the US Commodity Futures Trading Commission sued Binance and its CEO Changpeng Zhao for operating what the regulator alleged was an “illegal” exchange and a “sham” compliance programme. PHOTO: REUTERS

BINANCE.US and Changpeng Zhao, the crypto exchange’s founder and majority owner, have been exploring ways to reduce his stake in the company, the Information reported on Thursday, citing two people familiar with the matter.

Zhao, who is also the CEO of Binance – the world’s biggest crypto exchange, has been trying to sell at least some of his stake since last summer, the report said.

In March, the US Commodity Futures Trading Commission (CFTC) sued Binance and its CEO Zhao for operating what the regulator alleged was an “illegal” exchange and a “sham” compliance programme.

The CFTC sued Binance, its former top compliance executive and Zhao with “willful evasion” of US law, “while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit.”

Since then, Binance.US leaders have discussed how reducing Zhao’s stake might help improve the company’s standing in the eyes of US regulators, the report added.

Binance.US executives worry that because Zhao was named in the CFTC lawsuit, the company may not be able to acquire certain regulatory licences that it wants to have in the US as long as he is the majority owner, the report added.

Binance’s crypto market share likely fell after zero-fee trading halt

Binance on Sunday halted Bitcoin withdrawals for about 90 minutes, blaming congestion on the token’s blockchain.

Binance again pauses Bitcoin withdrawals, cites congestion

Beijing cracked down on digital assets over concerns about money laundering, currency outflows and the environmental impact of Bitcoin mining.

Chinese users of the Binance and FTX exchanges show holes in Beijing’s crypto ban

The inquiry by the US Justice Department’s national security division is looking at whether Binance or company officials ran afoul of sanctions related to Russia’s invasion of Ukraine, said five people familiar with the matter who asked not to be named.

Binance faces US probe of possible Russian sanctions violations

Voyager was founded in 2018 as a crypto trading platform and grew rapidly, reaching a peak of 3.5 million users and some US$6 billion worth of cryptocurrency assets.

Binance US ends US$1 billion deal to buy bankrupt crypto firm Voyager

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

Binance.US did not immediately respond to Reuters’ requests for comment. REUTERS

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

Binance Spotlight

Share with us your feedback on BT's products and services

Feedback

TRENDING NOW

Vincent Tan, founder of Berjaya Group, has reduced his holdings in multiple companies within the group.

Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan

Over the past three years, Singapore has overtaken Hong Kong as the top destination for Taiwanese offshore wealth.

Taiwan’s wealthy seeks diversification to Singapore, sparking private banking race: Bloomberg

Located along Tamarind Road, the five-storey Serenity Park condominium comprises 179 units across 10 blocks.

Serenity Park condo owners lower asking price to S$440 million in second shot at collective sale

From Jul 15, the minimum bid sizes for Hong Kong dollar, renminbi and yen-denominated securities contracts listed on SGX will not be aligned with those in their home markets.

SGX to roll out post-trade custody model, changes to bid mechanics in July, cut board lots in October