CZ Denies Reports that Binance will Delist US Tokens
- US regulators are investigating the relationship between Binance and Binance.US.
- A Reuters report claimed that Binance.US transferred $400 million to a firm run by Changpeng Zhao.
Binance CEO and founder Changpeng “CZ” Zhao has denied reports about the crypto exchange delisting all crypto tokens from the United States. Binance has faced increased scrutiny from regulators in the US in recent weeks, and a Bloomberg report claimed the exchange was set to part ways with its US partners.
Citing an unnamed source, Bloomberg wrote that Binance is “looking at whether to sever ties with intermediary firms such as banks and services firms and is reassessing venture-capital investments in the US.” The report suggested that Binance might delist tokens such as Circle’s USD coin.
Changpeng Zhao labeled such reports “false,” and when a follower asked what a “U.S.-based token” was, the Binance boss remarked that “blockchain has no borders.” CZ later explained that Binance “pulled back on some potential investments or bids on bankrupt companies in the US for now.”
CZ recently tweeted that Binance planned to review projects in line with “ongoing regulatory uncertainty […] to ensure our users are insulated from any undue harm.” Earlier this week, news broke that Binance would possibly pay fines to resolve SEC investigations. Both the regulatory agency and the Justice Department are looking into the exchange for possible violations of US anti-money-laundering laws.
Although Binance doesn’t offer services to Americans, the exchange has a sister company, Binance.US, which it claims operates independently. However, recent events have raised doubts about such claims. Reuters reported on Thursday, February 16, that Binance.US transferred $400 million to a trading firm run by CZ in early 2021, reigniting questions about the autonomy of the American company.
Reuters claims that Catherine Coley, the then CEO of Binance US, said the transactions were “unexpected” and demanded an explanation. Coley resigned from her position as CEO a few months later. Interestingly, Brian Brooks also left his role as Binance.US CEO a few months into the job, blaming a lack of independence from CZ.
Changpeng Zhao could find himself in more trouble with US regulators if it emerges that Binance controls its US counterpart.
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