The Story of Binance.US and Regulatory Tightrope

FACTS

IV. ZHAO AND BINANCE ESTABLISHED THE BINANCE.US PLATFORM WHILE MAINTAINING SUBSTANTIAL INVOLVEMENT AND CONTROL OF ITS OPERATIONS.

141. In 2019, while continuing their efforts to covertly maintain U.S. VIP customers on the Binance.com Platform, Zhao and Binance also began implementing plans to launch a new crypto asset platform in the United States consistent with the Tai Chi Plan.

142. In March 2019, Binance’s Chief Financial Officer (“Binance CFO”) reaffirmed to Zhao that the “first goal” was “to protect [Binance].com from U.S. regulatory engagement.” To do so, he noted that Binance “will need to launch” a new U.S. crypto asset platform, and that “the main goal for that one is to limit the loss of users from the U.S.”