Binance founder Changpeng Zhao has been officially banned from managing the world’s largest cryptocurrency exchange for life. What was previously rumored to be a three-year ban has now turned into a lifetime ban, marking a significant shift for the platform that grew into a global powerhouse under his leadership.
Changpeng Zhao banned from managing Binance | Here’s why
Zhao is officially banned from managing cryptocurrency businesses following a settlement with the US Department of Justice (DOJ). In addition, Zhao could face a fine of $50 million and four months in prison. This is because he faced serious consequences due to charges such as market manipulation and non-compliance with anti-money laundering laws.
Furthermore, despite the ban, CZ’s influence over Binance is still not over. Since CZ is the largest shareholder. Also, he has considerable control, including the right to review the company’s performance, nominate board members, and propose resolutions.
Currently, Changpeng Zhao has been in prison for four months and is expected to be released at the end of September 2024. Furthermore, he will serve the rest of his sentence in a transitional residence before becoming fully independent after his release.
The crypto exchange reportedly said the former CEO was barred from holding a management position at the firm. Since then, Binance has grown rapidly. The company’s board, which was once under the sole control of CZ, has now expanded to seven members.
- Two of them are outer monitors selected by the DOJ to ensure that CZ remains uninvolved in daily functions.
- This restructured administration, led by new CEO Richard Teng, ensures compliance with regulatory standards while moving into a new era without its creator.
This change reflects the tightening grip of regulatory bodies on the cryptocurrency industry as wall as serves as a reminder that even the giants of the industry are not untouched by it.
