Binance CEO Confirms CZ Is Permanently Barred from Running the Exchange

Changpeng “CZ” Zhao, soon to be released from a U.S. prison, may face a permanent ban from managing or operating Binance, according to a plea deal with prosecutors.

A report from Axios on September 5 revealed that Binance CEO Richard Teng stated CZ received a lifetime ban from managing the exchange, contrary to earlier reports suggesting a three-year restriction.

Although not explicitly mandated in the plea agreements, the former CEO appears barred from holding any management position at Binance.

In November 2023, U.S. authorities reached a $4.3 billion settlement with Binance, where Zhao pleaded guilty to violating the Bank Secrecy Act. He was sentenced to four months in prison and is expected to be released on September 29. As part of the deal, CZ resigned as CEO, replaced by Teng, but remained available for consultation.

Binance’s plea agreement filed on November 21 confirmed that Zhao was barred from any involvement in managing the exchange. This was presented as a “consideration” for prosecutors rather than a mandatory legal requirement. Additionally, Zhao was required to pay $50 million to U.S. regulators. Meanwhile, Binance’s case with the U.S. Securities and Exchange Commission remains unresolved as of September 2024, despite recent legal developments that could impact the SEC’s authority over crypto regulations.

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