Media: the management of the Binance.US is considering the possibility of selling a CZ stake in the company
Date: 2023-09-14 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
The further development of Binance.US depends on whether the CEO of the global exchange, Changpeng Zhao, can sell his shares or transfer them to a trust. The Block reports this with reference to its sources.
The publication stated that Binance.US held a corporate meeting after the departure of the company's CEO Brian Schroeder. During this meeting, top management presented three options for further actions, the source noted.
The first is development in accordance with the laid down plan. This option involves the release of new products, including crypto derivatives.
To implement it, it is necessary for CZ to solve its problems with regulators. In particular, this involves the sale of Zhao’s share or the transfer of shares to a blind trust, the publication noted. The latter means full management of the portfolio by a trustee.
The second is optimizing the company’s expenses with subsequent reinvestment directly into the platform. This option, according to the source, assumes the willingness of both Binance.US and the global exchange to invest in a bear market.
The third is hibernation. The source said that in this case the platform will retain its current operating volumes and licenses. But there is a risk that its market share will decline even further, the publication noted.
In July 2023, this figure reached 0.9%. Trading volume on the platform has also been steadily declining. In January 2023, it exceeded $10 billion, and in August fell to $290 million, according to The Block:
In August 2023, information emerged that Changpeng Zhao planned to close the American division in order to minimize possible damage from sanctions from the US Securities and Exchange Commission (SEC).
This decision was opposed by Schroeder, who later left the company without explanation. CZ denied this, noting that there was no way the CEO could have blocked such a decision if it had actually been on the agenda.
