Binance Contemplated Closing U.S. Exchange to Safeguard Worldwide Operations: The Information

Amidst looming investigations, the board of directors at Binance.US faced a crucial vote on whether to liquidate the company, as reported by The Information. Binance CEO Changpeng “CZ” Zhao reportedly considered shutting down the U.S. branch earlier in the year to safeguard the broader company. Sources revealed that the board, chaired by Zhao, could not reach a unanimous decision on liquidation, with Binance.US CEO Brian Shroder reportedly blocking the move. The Information reached out to Binance.US for comment, but no response was provided.

Binance has faced increased regulatory scrutiny for its global operations in recent months. The Securities and Exchange Commission (SEC) filed a lawsuit against Binance, Binance.US, and CZ, alleging that they operated as an unregistered securities exchange. Additionally, in March, the Commodity Futures Trading Commission (CFTC) sued Binance and Zhao over accusations of knowingly offering unregistered crypto derivatives products in the U.S.

In response to the ongoing legal challenges, Binance has reportedly implemented significant staff cuts as part of its efforts to address the situation.