Changpeng Zhao, the founder of Binance.US, is exploring ways to reduce his ownership stake in the company, according to a report by The Information.
The move is reportedly in response to a lawsuit filed against the exchange by the Commodity Futures Trading Commission (CFTC), which alleges multiple infractions and seeks to hold the company accountable under US federal law.
Sources suggest that top executives at Binance.US are discussing whether reducing Zhao’s ownership position would appease US regulators and improve the company’s chances of obtaining regulatory licenses.
The CFTC lawsuit has also prompted some current and former Binance.US executives to seek legal representation.
Binance has criticized the US regulatory environment in recent months, and the company’s Chief Strategy Officer, Patrick Hillmann, has expressed a desire to be regulated in the UK.