Binance Nearly Shuttered U.S. Exchange to Protect Global Operations: The Information
As investigations loomed, the board of directors of Binance.US voted on whether to liquidate the company but could not come to a unanimous decision, The Information reported.
Aug 2, 2023 at 12:19 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/6CSA2PEWQRBDRMLBIPOQ2DABJA.jpg)
Binance founder and CEO Changpeng Zhao (Antonio Masiello/Getty Images)
Binance CEO and founder Changpeng "CZ" Zhao came close to shuttering the crypto exchange's U.S. arm earlier this year in order to protect the wider company, The Information reported on Tuesday.
A person familiar with the matter told the outlet that the board of directors of Binance.US, the U.S. affiliate of the massive exchange, voted on whether to liquidate the company but could not come to a unanimous decision, with Binance.US CEO Brian Shroder blocking the decision. Zhao serves as chair for the Binance.US board of directors.
A spokesperson for Binance.US did not have a comment when reached by CoinDesk.
Binance has been under heightened regulatory scrutiny in recent months over the handling of its global operations. Earlier this month, the Securities and Exchange Commission (SEC) sued Binance, Binance.US and CZ, alleging that the companies operated as an unregistered securities exchange. And in March, U.S. regulator Commodity Futures Trading Commission (CFTC) sued Binance and Zhao over allegations that the company knowingly offered unregistered crypto derivatives products in the U.S.
According to reports, Binance has conducted massive cuts to its staff as it mounts a response to the ongoing lawsuits.
Nick Baker contributed reporting.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/f818809f-a2ee-46bc-82a5-92a980588bc5.png)
Rosie Perper is the Deputy Managing Editor for Web3 and Learn, focusing on the metaverse, NFTs, DAOs and emerging technology like VR/AR. She has previously worked across breaking news, global finance, tech, culture and business. She holds a small amount of BTC and ETH and several NFTs. Subscribe to her weekly newsletter, The Airdrop.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.