Richard

Future

2024

Binance CEO Richard Teng disclosed that Changpeng Zhao, commonly known as CZ, will be permanently barred from managing or operating the cryptocurrency exchange, in a recent interview with&nbsp;<a style="text-decoration:none" href="https://www.axios.com/pro/fintech-deals/2024/09/04/binance-influence-changpeng-zhao" rel="noopener noreferrer nofollow">Axios</a>. The decision follows Zhao's conviction for enabling money laundering and violating U.S. sanctions.
<h2 dir="ltr" id="span-span-lifetime-ban-from-binance-management-span-span">Lifetime Ban from Binance Management</h2>
This ban is more severe than earlier speculations, which suggested a temporary restriction of several years. Worth noting, the Department of Justice (DOJ) imposed this lifetime ban as part of Zhao’s plea deal, reflecting the seriousness of the charges against him.
&nbsp;
Prior to this, some news outlets had reported that Zhao would face only a short-term prohibition from managing Binance. However, Teng clarified that the ban extends indefinitely, ensuring that Zhao will not return to any operational role at the exchange.
<h2 dir="ltr" id="span-span-zhao-s-imminent-release-and-continued-influence-span-span">Zhao's Imminent Release and Continued Influence</h2>
Changpeng Zhao is expected to complete his&nbsp;<a style="text-decoration:none" href="https://www.cnbc.com/2024/05/31/binances-ex-ceo-changpeng-zhao-begins-prison-sentence-in-southern-california.html#:~:text=Binance's%20billionaire%20founder%20Changpeng%20Zhao,laundering%20at%20his%20crypto%20exchange." rel="noopener noreferrer nofollow">four-month prison sentence</a> soon. Having pleaded guilty to charges related to money laundering and U.S. sanctions violations, Zhao’s sentence includes his permanent exclusion from managing Binance.
&nbsp;
However, Teng acknowledged that Zhao holds approximately 90% of Binance's shares. Although Zhao cannot manage the company directly, his position as a majority shareholder allows him to have a strong voice in the firm’s decisions.&nbsp;
&nbsp;
Teng emphasized that Zhao could still affect the company’s trajectory by nominating new board members or CEOs if he is dissatisfied with the company’s performance.
<h2 dir="ltr" id="span-span-binance-s-compliance-and-future-plans-span-span">Binance’s Compliance and Future Plans</h2>
Since Zhao’s departure, Binance has been focused on enhancing its regulatory compliance. In 2024 alone, the company has invested over $200 million in compliance measures. This investment follows a hefty $4.3 billion fine imposed in 2023. Binance has brought in&nbsp;<a style="text-decoration:none" href="https://www.wsj.com/articles/binance-gets-two-compliance-monitors-in-settlements-with-u-s-authorities-5ec6c22a" rel="noopener noreferrer nofollow">two external monitors</a> to ensure strong compliance with regulatory standards.
&nbsp;
Despite the regulatory hurdles, Binance remains profitable and continues to expand its global presence, according to Teng. The company is in the process of securing additional licenses and plans to hire 500 new employees before 2025.&nbsp;

Changpeng Zhao Permanently Barred from Binance Management But Retains Power: Binance CEO

Table of Contents

BSCN

Other articles published on Sep 10, 2024

FBI Reports Record $5.6B in Losses from Crypto Scams in 2023

New York City introduces bill to publicize AI tools used by city agencies

Stellar Powers Global USDC Cash Service Through Partnership with Zypto and MoneyGram – XLM Poised...

FTX Strikes Deal with Emergent Over $600M Robinhood Shares

FET, RUNE, and ONDO Reveal Potential for Bullish Reversals

Japan’s MicroStrategy Buys More Bitcoin

Join our free newsletter for daily crypto updates!