Binance CEO says CZ is banned from managing or operating the exchange

9 Sept

Binance CEO Richard Teng has confirmed that Changpeng Zhao (CZ), the founder of Binance, is subject to a lifetime ban from managing or operating the cryptocurrency exchange. This revelation, reported by Axios on September 5, 2024, has clarified that the restriction is permanent, not limited to the previously reported three years.

Support Bitesize Bitcoin

The restriction is tied to a settlement reached with U.S. authorities in November 2023. As part of the $4.3 billion settlement, Zhao pleaded guilty to a felony charge of violating the Bank Secrecy Act. The plea agreement was a move of importance by Binance, as it sought to resolve ongoing legal issues with U.S. regulatory bodies. Zhao was subsequently sentenced to four months in prison, a term he is expected to complete by September 29, 2024.

As part of the plea agreement, Zhao stepped down as Binance’s CEO in late 2023, paving the way for Richard Teng to take over. At the time, Zhao expressed his willingness to remain available as an advisor to the Binance team, stating that he was stepping aside to allow Binance to grow independently under new leadership. However, new details have now emerged about the extent of Zhao’s involvement.

Lifetime Ban Clarified

According to the Axios report, the plea agreement explicitly prohibits Zhao from “any present or future involvement in operating or managing” Binance. This condition was listed as part of the “remedial measures” Binance had implemented during its legal negotiations. However, it was noted that this was a consideration for prosecutors, rather than a binding legal requirement at the time of the settlement.

Initially, several news outlets had reported that the ban would only last for three years. Teng’s recent comments have now clarified that the prohibition on Zhao’s involvement is, in fact, permanent.

Articles