Changpeng Zhao Banned From Running Binance for Life

Initially, it was believed that Zhao would not be able to return to Binance for three years. However, it later turned out that the ban on managing the platform is for life, writes Axios.

Changpeng Zhao and Binance: The End of Control, Not the End of Influence

CZ resigned as Binance CEO as part of a deal with the US Department of Justice that the parties reached last November. The agreement stipulated that the crypto exchange founder would be removed from “management or operations” of the company.

The position of Binance CEO was taken by Richard Teng, who confirmed that Zhao had in fact received a lifetime ban from managing the platform.

Teng emphasized that CZ remains the largest majority shareholder of Binance. Therefore, he retains the right to influence the current state of affairs. For example, Zhao can make proposals to change the management or appoint new board members.

Following Zhao’s departure, Binance now has a seven-member board of directors. Previously, CZ was the company’s sole director.

The agreement will be monitored by two external agents appointed by the Justice Department. Their job is to ensure that the ban on Zhao’s involvement in the management of the crypto exchange is observed.

CZ himself has already said that he does not plan to take up leadership positions in any companies in the future. The Binance founder promised to focus on investing in blockchain, artificial intelligence (AI), and biotechnology.

Zhao has spent the last few months serving his prison sentence at the Federal Correctional Institution in Lompoc, California. The businessman is expected to be released on September 29.

Earlier it was reported that CZ had been transferred from prison to a rehabilitation center in Los Angeles. This is a standard procedure in which prisoners are prepared for their return to society.

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