Binance.US seeking to cut Changpeng Zhao’s majority stake: Report
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Crypto exchange Binance US and its founder Changpeng Zhao (CZ) are reportedly looking for ways to reduce his stake in the firm, amid harsh scrutiny from United States federal regulators over the past year.
The crypto executive — Binance US’ majority owner — has reportedly been trying to reduce his stake in the U.S.-based exchange since last summer, according to a
In February, the SEC sued Paxos, the issuer of Binance’s stablecoin BUSD resulting in the end of minting. Meanwhile, the regulator blocked approval of a Binance.US bid for assets belonging to bankrupt crypto lending firm Voyager Digital.
It appears that the Securities and Exchange Commission (SEC) is specifically targeting American-based crypto exchanges to bring them under the same stringent regulations as banks and stock brokerages.
The result has been an exodus from the U.S. with major players including Coinbase, Gemini, Ripple, and Galaxy Digital among those eyeing a move offshore following recent SEC enforcement action.
Other major exchanges such as Kraken and Bittrex have already fully or partially shuttered services in the United States as the war on crypto continues.
Magazine: Does SEC Chair Gary Gensler have the final say?
