Former Binance CEO Changpeng Zhao has received a lifetime ban from “managing or operating” the centralized crypto exchange, according to current CEO Richard Teng.
Teng disclosed in an Axios interview that Zhao’s lifetime ban is a “key condition” of the plea agreement between Binance and U.S. authorities. Initial reports had suggested Zhao might face a multi-year ban instead.
“Under the terms of the agreement, CZ is prohibited from any present or future involvement in operating or managing the business,” a Binance spokesperson confirmed to Decrypt.
Despite the ban, Zhao remains the largest shareholder of the crypto exchange and will retain his shareholder rights.
“As a shareholder, he will monitor the company’s performance. If it falls short of his expectations, he has the right to replace or nominate a new board of directors or CEO,” Teng disclosed in his Axios interview. “Shareholders also have the ability to table a resolution.”
CZ will finish his jail sentence on September 29, following his guilty plea to money laundering and his resignation as CEO over 10 months ago to support the company.
Zhao’s plea and resignation followed years of dismissing accusations of misconduct at Binance. He later acknowledged making “mistakes” and took responsibility, appointing Richard Teng, who was Binance’s Global Head of Regional Markets, as the new CEO.
In his resignation tweet, Zhao mentioned he planned to take a break before exploring other interests in the crypto and tech industries.
“My current thinking is I will probably focus on passive investing, becoming a minority token/shareholder in startups within areas like blockchain/Web3/DeFi, AI, and biotech,” he wrote. “I am pleased that I will finally have more time to spend exploring DeFi.”
In the same post, Zhao mentioned that he doesn’t see himself “being a CEO driving a startup again,” adding that he’s “content being a one-shot (lucky) entrepreneur.”
