Binance founder Changpeng Zhao, widely known as CZ, has been hit with a lifetime ban from running the company, marking a dramatic shift for the world’s leading crypto exchange. Initially, reports hinted at a three-year ban, but recent updates confirm it’s a lifetime restriction.
This ban follows a significant legal settlement with the Department of Justice (DOJ), which also included a hefty $50 million fine and a four-month prison term for Zhao. The DOJ’s settlement accused him of serious violations, including market manipulation and failing to follow anti-money laundering rules.
Despite the ban, Zhao retains substantial influence as Binance’s largest shareholder. CEO Richard Teng clarified that while CZ can’t manage or operate the company day-to-day, he still holds rights as a major investor. Zhao will be able to review company performance, nominate board members, and propose resolutions.
The company’s board, once solely Zhao, has expanded to seven members, with two external monitors appointed by the DOJ to ensure compliance. This setup aims to prevent any direct involvement by Zhao in Binance’s operations.
Zhao, who will complete his sentence on September 29, has publicly stated he won’t return to a CEO role and plans to focus on investing in blockchain and AI technologies. His departure marks the end of an era for Binance, which thrived under his leadership and became the top global crypto exchange.