Ex-Binance CEO Resigns Amid Bitcoin Halving Anniversary and Continual SEC Probe
Summary:
Changpeng Zhao, the former CEO of Binance, has resigned as chairman of the board for Binance.US. This comes as Bitcoin marks the 11th anniversary of its first-ever halving, soaring from $12 to $37,000. Despite these changes, the US Securities and Exchange Commission continues to investigate possible fraudulent activities within Binance.US.
Changpeng Zhao, the ex-CEO of Binance, has formally stepped down from his role as the chairman of the U.S. arm of Binance, Binance.US. On another note, Bitcoin marked the 11th anniversary of its inaugural halving today, during which it experienced a price surge from $12 to a whopping $37,000 currently. Despite the departures and celebrations, the U.S. Securities and Exchange Commission (SEC) continues its probe into possible fraudulent activities within Binance.US.
Speaking of Changpeng "CZ" Zhao's departure, Binance.US made an official announcement on its X account on November 28. The disclosure clarified that the platform had no involvement in Binance's settlement of $4.3 billion with the U.S. Department of Justice.
The statement expressed gratitude to CZ for his years of valuable guidance. Having resigned as the board chair, CZ passed on his voting privileges through a proxy transaction, turning his engagement with the company into purely monetary involvement and withdrawing from all other duties. Reportedly, last week, CZ admitted to a single felony account related to inadequate management of Anti-Money Laundering elements, potentially resulting in an 18-month prison term.
Reflecting on Bitcoin's history, the premier cryptocurrency had its first-ever halving 11 years ago today. The community is commemorating this significant anniversary while also revisiting several impactful moments from Bitcoin's past before the upcoming halving expected in April 2024.
The first connnection via Bitcoin took place near about 15 years ago, a few months after its creator, Satoshi Nakamoto, presented the Bitcoin white paper in October 2008. The very first halving occurred on November 28, 2012, which was nearly four years after the mining of Bitcoin's initial block. During this period, Bitcoin was priced at merely around $12, which is a staggering 308,200% less than its present value.
Bitcoin halvings are known to significantly bring down the availability of the cryptocurrency, which subsequently affects its price cycle. For instance, a year after the first halving, Bitcoin rose to almost $1,000. The second halving led to a 350% increase in the following year, with Bitcoin eventually reaching its highest figure of close to $20,000 in December 2017.
Against all odds, the U.S. SEC continues to investigate potential fraud activities at Binance.US, similar to the case with the now-defunct crypto exchange FTX. As per an article by The Wall Street Journal, Binance.US claimed in a federal court hearing on November 27 that the securities regulator lacks evidence of any asset misuse, urging U.S. Magistrate Judge Zia Faruqui to contemplate concluding the probe for potential fraud.
Matthew Laroche, an attorney for Binance.US, alluded to the soaring lawsuit expenses, mentioning a nearly 90% drop in Binance.US assets and a 50% reduction in its user base since the SEC filed the lawsuit. In June, a case was filed by SEC against both Binance platforms, citing their participation in the sale of unregistered securities as well as alleged manipulation of customer assets at their discretion, including remitting money to Switzerland-based Sigma Chain as directed by ex-CEO Changpeng Zhao.
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Published At
11/28/2023 7:01:05 PM
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