Leading crypto exchange, Binance CEO Richard Teng has said that ex-CEO, Changpeng Zhao(CZ) has been barred from managing and running Binance, but will still have a say as the majority shareholder.
Binance CEO Richard Teng said in an interview that CZ has received a lifetime ban from managing or operating the exchange, “not just three years”, as many news outlets previously reported.
Binance reportedly said the CZ was barred from a management position at the firm, even if it was not explicitly required by either Zhao’s or Binance’s plea agreements.
The news comes in as CZ is soon expected to be released by United States prison authorities in a few weeks. His deal with prosecutors included that he could be permanently barred from operating or managing the crypto exchange Binance.
However, CZ retains an estimated share of 90% in Binance, and as a majority shareholder, he does have a strong say in the firm, which was also confirmed by Teng.
CZ had first stepped down as a CEO in November 2023, when he was levied with charges of failing to maintain an effective anti-money laundering program at Binance. The step down was a part of Binance’s plea agreement filed on Nov. 21. In the agreement, Binance agreed that CZ was prohibited from “any present or future involvement in operating or managing” the exchange. However, the agreement for prosecutors’ “consideration” as a part of the “remedial measures” the company had taken and not a legal requirement.
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