Binance founder and former CEO Changpeng Zhao (CZ) has been banned for life from managing the cryptocurrency exchange. Initially, reports indicated a potential three-year ban, but it was later confirmed as permanent.
Zhao's legal issues stem from multiple violations, including offering unregistered securities and deficiencies in anti-money laundering protocols. In November, Zhao resigned as CEO as part of a deal with the US Department of Justice, which required his permanent removal from the company's management.
Despite stepping down, Zhao remains Binance's largest majority shareholder, allowing him to influence the company's direction. Richard Teng, Zhao's successor as CEO, confirmed the lifetime ban and highlighted Zhao's continued role as a shareholder.
Following his departure, Binance now has a seven-member board, compared to the previous sole directorship under Zhao. To ensure compliance, two external agents appointed by the DOJ will monitor Zhao's adherence to the ban.
Zhao has expressed intentions to focus on investments in emerging fields such as blockchain, AI, and biotechnology following his departure from Binance. He began serving his prison sentence in July and is expected to be released on September 29. He also agreed to pay a $50 million fine as part of his sentence.
