Binance.US Exploring Options to Cut Changpeng Zhao’s Stake

Binance.US execs reportedly worried licenses in the US could be impeded as long as Changpeng Zhao retains majority stake

article-image

Web Summit (CC BY 2.0), modified by Blockworks

share

Binance.US and CEO Changpeng Zhao are actively exploring strategies to reduce his dominant ownership stake in the company, in what appears to be a pursuit to bolster the company’s reputation and standing with US regulators. 

Zhao has been trying to sell a portion of his stake since the summer of 2022, The Information reported on May 11, citing two unnamed sources.

Binance and Zhao are embroiled in a lawsuit filed by the CFTC in March.

The CFTC alleged that Binance operated an “illegal” exchange and maintained a “sham” compliance program. It targeted Binance, Zhao and Samuel Lim, the former compliance chief, accusing them of willfully evading US law and engaging in activities outside the US to avoid CFTC regulations.

These activities involved structuring entities and transactions to bypass registration requirements and providing US customers with instructions on circumventing compliance controls.

Both Zhao and Binance.US were already attempting to cut his stake before the CFTC lawsuit. But since the suit, company leaders have discussed how this might help improve the company’s image in the eyes of US regulators.

Executives at Binance.US expressed concerns that the company’s ability to obtain desired regulatory licenses in the US may be hindered as long as Zhao, named in the lawsuit, retains his majority stake, Reuters reported, citing The Information.

Binance.US didn’t return Blockworks’ request for comment by press time.

Having a controlling stake means owning a big chunk (usually over 50%) of a company’s shares. Zhao’s controlling stake means he has the power to call the shots and influence everything from Binance’s operations to strategy.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The exchange’s full approval from the UAE’s Securities and Commodities Authority marks a regulatory milestone for global crypto oversight

by Blockworks /
article-image

Founded by Coinbase and Cruise veterans, CipherOwl plans to bring artificial intelligence to blockchain monitoring and risk detection

by Blockworks /
article-image

As the shutdown enters its second week, sources say the Senate Banking Committee looks to move ahead with a market structure bill markup

article-image

The collaboration expands Ripple’s Middle East footprint, supporting Bahrain’s blockchain adoption and future rollout of Ripple USD

by Blockworks /
article-image

The medical device firm will manage its $400 million Solana holdings using Coinbase Prime infrastructure to bolster its digital asset strategy

by Blockworks /
article-image

The deal gives PayPay a 40% stake in Binance Japan, linking digital assets with Japan’s largest mobile payment network

by Blockworks /