Binance.US Restricted in Florida and Alaska After Former CEO’s Guilty Plea
Troubled cryptocurrency exchange Binance.US continues to face pressure from regulators in the United States after regulators in Florida and Alaska told the crypto exchange that it can no longer serve its residents.
Florida and Alaska regulators have informed Binance.US that the cryptocurrency exchange is no longer allowed to serve residents of their states, as The Wall Street Journal reported on January 25.The Alaska Division of Banking and Securities reportedly denied the renewal of Binance.US’s license in January 2024. In addition, Florida’s Office of Financial Regulation issued an emergency suspension order against Binance.US’s money transmitter license. This suspension reportedly occurred a week after Binance’s founder and former CEO, Changpeng Zhao (CZ), pleaded guilty to violating U.S. anti-money laundering policies on November 21, 2023.
Last fall, Binance’s founder Changpeng Zhao pleaded guilty to charges of violating U.S. anti-money-laundering requirements, a felony. Regulators in both states said that Zhao’s guilty plea makes him unfit to control Binance.US, which caters to Americans who want to trade crypto. Zhao is a roughly 80% shareholder.
In a November 28 X (formerly Twitter) post, Binance.US reminded users the exchange was not a party to the $4.3 billion settlement between U.S. officials, Binance and CZ announced on November 21. However, Zhao agreed to step down as chair and “will no longer be involved” in the governance of Binance.US, transferring his voting rights through a proxy.
In December, a U.S. federal court accepted Zhao’s guilty plea to one count of Bank Secrecy Act violations. As part of the settlement, Zhao stepped down as Binance.US chair and transferred his voting rights, removing his influence
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