As part of his plea deal with U.S. authorities, Changpeng “CZ” Zhao, who used to be CEO of Binance, will not be able to run or manage the cryptocurrency exchange for life. Binance CEO Richard Teng recently made it clear that the ban is for life, even though some stories said it would only last for three years.
As part of his plea deal, CZ gave up his job as CEO. This was part of a $4.3 billion settlement with U.S. officials in November 2023. Although he still owns a big chunk of Binance—roughly 90%—he is not allowed to have any direct management or operating roles in the business. Even though he is banned, CZ is still a powerful partner and can still use his rights to affect big business choices, like who joins the board or who runs the company.
CZ has been in trouble with the law because he broke the Bank Secrecy Act. He was sentenced to four months in jail and agreed not to run the exchange afterward. Even though he is about to be freed, he will no longer be involved in Binance’s daily activities. But Binance is still doing well under its new leadership. It is still making money and growing its attempts to follow the rules, even though 2023 has been tough.
