According to two sources familiar with the matter, Binance.US and its founder and principal owner Changpeng Zhao have been investigating methods to decrease his controlling interest in the cryptocurrency exchange, as reported by The Information on Thursday.
The report stated that since last summer, Changpeng Zhao, who serves as both the CEO of Binance, the largest cryptocurrency exchange globally, and the majority owner, has been attempting to sell some of his stake in the company.
Additionally, in March, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against both Binance and Zhao, accusing them of running an “illicit” exchange and an ineffective compliance program.
The US Commodity Futures Trading Commission (CFTC) accused Binance, its previous head of compliance, and Changpeng Zhao of deliberately evading US laws, all while exploiting regulatory arbitrage to maximize their business profits.
Following the lawsuit, executives at Binance.US have reportedly considered reducing Zhao’s stake in the company as a way to bolster its reputation with US regulators.
The executives fear that because Zhao was implicated in the CFTC’s lawsuit, Binance.US may be unable to secure specific regulatory licenses in the US if he remains the majority owner of the company.
