Binance US and its founder Changpeng Zhao are reportedly seeking ways to reduce his stake in the company due to intense scrutiny from US federal regulators over the past year. The Commodity Futures Trading Commission (CFTC) sued Binance and CZ in March for operating an "illegal" exchange with a "sham" compliance program.

Binance US bosses are concerned that they may not be able to acquire certain regulatory licenses as long as CZ remains the majority owner. The SEC is targeting American-based crypto exchanges to bring them under the same stringent regulations as banks and stock brokerages, resulting in an exodus from the US by major players.