Changpeng Zhao, CEO of the Binance cryptocurrency exchange, planned to liquidate the American division in order to protect the global platform from regulatory pressure. He reports this with reference to his sources.
According to the publication, the Board of Directors of Binance.US, chaired by CZ, almost unanimously supported this idea. However, division CEO Brian Schroeder blocked the decision.
Sources at the company say the CEO feared possible damage to both customers and the firm as a whole. It is not known exactly when this happened. The article only states that the meeting took place in 2023.
Remarkably, even before the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Zhao personally, there was information about the plans of the leadership of the US division to distance themselves from CZ.
After the appeal of the regulator, the market share of Binance.US decreased significantly. In June 2023, it reached a two-year low, in July it decreased to 0.9%.
The company was forced to reduce staff, which the management explained by cost optimization. At the end of July 2023, it was also reported that Binance.US was allegedly engaging in fictitious trading to simulate high performance.
Neither Changpeng Zhao nor Binance.US have yet commented on the situation.
Source: Cryptocurrency
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