Changpeng Zhao is reportedly looking to reduce his ownership of the company.
According to sources, Zhao has been trying to sell part of his shares since the second quarter of last year.
The Commodity Futures Trading Commission (CFTC) named Zhao CEO and COO, Samuel Lim, in a lawsuit filed in March 2019.
The agency said that Binance.US leveraged its domestic business connections to generate large profits, but that the exchange and CZ knowingly ignored its registration and compliance obligations under US federal law.
Additionally, the CFTC says that Binance, Zhao, and Lim have assisted US customers in using VPNs to bypass Binance’s geo-restrictions. The document also implies that Binance conceals its ownership and organizational structure through a “maze of corporate entities.”
According to the report, the exchange’s top executives are debating whether to reduce Zhao’s ownership position. This is expected to assuage stern views from US regulators.
Zhao’s involvement in the CFTC lawsuit worried executives at Binance.US. Directors fear that if Zhao remains the main owner, the company may not be able to obtain some regulatory licenses .
In April, Binance’s Spot trading volume dropped 48.1% to $287 billion, becoming the second-lowest monthly trading volume since 2021.
The study also showed that Binance’s market share fell for the second consecutive month, reaching 46.3%, the lowest level since October 2022.