Binance founder attempted to shutter or offload U.S. exchange

Binance founder Changpeng "CZ" Zhao tried to shutter or sell the global exchange's U.S. affiliate earlier this year, The Information reports.

Why it matters: Once considered a potential acquirer of other crypto exchanges, news of the attempted offload shows that Binance.US is itself a takeover target.

Driving the news: The Binance.US board of directors, led by Zhao as chair, reportedly voted on closing the U.S. exchange but failed to get the unanimous votes needed to do so.

• The lone holdout was Binance.US CEO Brian Shroder, according to the report.
• When that failed, Zhao attempted to sell the exchange, speaking with execs at Gemini and some sovereign wealth funds in an effort to do so.

Of note: The exchange's founder had also sought to reduce his majority stake in the U.S. firm, according to an earlier report.

Context: The news of Zhao's efforts to shut down or unload the exchange comes amid a regulatory crackdown on Binance in the U.S.

• In June, the SEC sued Binance, Binance.US and Zhao, alleging market manipulation, securities law violations and fraud.
• The agency also asked a federal court for a temporary restraining order to freeze the assets of the U.S. exchange.
• That lawsuit follows a separate civil enforcement action from the CFTC, which charged Binance and Zhao with "willful evasion of federal law and operating an illegal digital asset derivatives exchange."

Zoom out: Binance has also struggled abroad, withdrawing its application to register with Germany's financial regulator BaFin last month.

• The firm recently exited several other European jurisdictions, including Belgium, the Netherlands and Cyprus.

Flashback: This is a quick reversal of fortune for Binance and its U.S. affiliate, which were once considered potential buyers of struggling or bankrupt competitors.

• Late last year, Binance signed a letter of intent to acquire FTX following that exchange's collapse but walked away from the deal a day later.
• Soon after, Binance.US emerged as a bidder for bankrupt crypto lender Voyager Digital.
• It ultimately terminated that deal as well, citing a "hostile and uncertain regulatory climate in the United States."