As regulatory investigations loomed, Binance CEO Changpeng “CZ” Zhao considered the possibility of shutting down the cryptocurrency exchange’s U.S. subsidiary earlier this year to protect the broader company, according to a report by The Information.
The board of directors of Binance.US, the American affiliate of the cryptocurrency exchange giant, reportedly deliberated on the decision to liquidate the company. However, a unanimous consensus couldn’t be reached, with Binance.US CEO Brian Shroder reportedly blocking the proposal. It’s worth noting that CZ serves as the chair of the Binance.US board of directors.
When contacted for comment, a spokesperson for Binance.US declined to provide a statement.
Binance has been facing heightened regulatory scrutiny in recent months concerning its global operations. The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, Binance.US, and CZ, alleging that these entities operated as unregistered securities exchanges. Additionally, in March, the U.S. Commodity Futures Trading Commission (CFTC) initiated legal action against Binance and CZ, claiming that the company knowingly offered unregistered cryptocurrency derivatives products in the United States.