Binance’s CEO, Richard Teng, has confirmed that former CEO Changpeng Zhao (CZ) is permanently barred from managing or operating the crypto exchange. Contrary to previous reports suggesting a three-year ban, Teng clarified that CZ faces a lifetime ban.
- CZ still has influence: Despite the management ban, CZ retains a 90% share in Binance, giving him a significant say as the majority shareholder.
- Plea agreement: The management restriction stems from a plea deal in November 2023, where Binance agreed to certain remedial measures following charges related to anti-money laundering failures.
CZ, who had been sentenced to four months in prison for violating the Bank Secrecy Act, is expected to be released in the coming weeks. His plea deal includes a permanent prohibition from involvement in Binance’s operations. However, this step was listed as a “consideration” for prosecutors rather than a legal requirement.
Additionally, the settlement included CZ personally paying US regulators $50 million. Despite this, Binance’s case with the US Securities and Exchange Commission continues, with evolving legal challenges still ahead for the exchange.
