Changpeng Zhao (Binance CEO), also known as “CZ”, revealed that Binance.US, the United States branch for worldwide crypto exchange Binance.US, is set to close a funding round to raise “couple hundred millions.”
CZ stated that he did not know the exact amount when he spoke at the Bloomberg New Economy Forum. The official confirmation of the financing round could come “in about a month or so.”
Cointelegraph reported that investors pulled out of a $100 million funding round due to regulatory concerns surrounding Binance.US. Brian Brooks, former CEO of Binance.US had initially pursued potential investors Ray Lane from venture capital company GreatPoint and a senior executive from Japanese holding company SoftBank under the pretext Binance.US would comply with all United States regulatory standards.
The investors pulled out of the exchange due to concerns about CZ’s 90% stake and concern over an investigation by U.S. authorities into tax and money laundering. Brooks resigned.
CZ remains confident that Binance.US can attract capital and go public despite the challenges. CZ stated earlier this year that top-level investors are still interested in Binance.US and that Binance.US planned to conduct an initial public offering shortly, particularly after Coinbase’s debut on Nasdaq. He doesn’t rule out Binance going public in future.
“From an IPO perspective it’s best to have a few rounds financing before that.”
Related: Binance opens layer two ETH deposits with Arbitrum One integration
CZ stated that he is only the chairman of Binance.US and not involved in day-to-day operations.
This news is timely as cryptocurrency and blockchain businesses are growing rapidly with new investors eager to invest. Numerous crypto-related companies went public over the past year. Many of these have experienced significant growth. BitDeer, a mining company, plans to become public on Nasdaq following a $4 billion merger of special purpose acquisition companies.