Crypto News- Binance.US finds itself under increased scrutiny in the United States following the guilty plea of its former CEO, Changpeng Zhao. Recent reports from The Wall Street Journal reveal that regulators in Alaska and Florida have taken a firm stand against the troubled cryptocurrency exchange.
Alaska and Florida Reject Binance.US: A Frosty Reception for the Crypto Exchange
In a significant blow, the Alaska Division of Banking and Securities declined to renew Binance.US’s license in January 2024, marking a pivotal moment in the ongoing regulatory challenges. Despite attempts to seek clarification from the agency, Cointelegraph’s inquiries remained unanswered at the time of reporting.
Simultaneously, Florida’s Office of Financial Regulation issued an emergency suspension order on Binance.US’s money transmitter license. This move came just a week after the founder and former CEO, Changpeng Zhao, pleaded guilty to U.S. Anti-Money Laundering violations on November 21, 2023.
Regulatory Headwinds Hit Binance.US in Alaska and Florida After CEO’s Guilty Plea
Changpeng Zhao’s guilty plea, leading to acceptance by a U.S. federal court in December 2023, prompted significant changes within Binance.US. Zhao stepped down as chair, relinquishing voting rights through a proxy agreement, thereby severing his influence on the firm’s governance.
Despite global actions against Binance, its U.S. counterpart continued operations, asserting on November 28, ‘We remain fully operational and are committed to continuing to serve our customers with the same products and services as we always have.’
However, not all states remain resistant, as regulators in Arkansas, Illinois, and South Dakota reportedly reached an agreement with Binance.US in late December, allowing it to continue operations. A critical condition for this agreement requires the irreversible transfer of Zhao’s voting rights.
Changpeng Zhao, in an attempt to secure his freedom, pledged his $4.5 billion stake in Binance.US for travel permission to the United Arab Emirates. Nevertheless, the court records reveal that Judge Richard Jones denied his request during a private hearing on December 29.
With Zhao’s sentencing scheduled for February 23, 2024, the former CEO faces the possibility of up to 18 months in prison, further adding to the tumultuous journey of Binance.US in the ever-evolving regulatory landscape.
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