Former Binance CEO Changpeng Zhao has a lifetime ban from “managing or operating” the centralized crypto exchange, according to current CEO Richard Teng.
Teng revealed that Zhao would be barred from managing the platform for life in an interview with Axios, which revealed that it was a "key condition" of the plea agreement between Binance and U.S. authorities. This comes after reports initially suggested Zhao would only be banned for a number of years.
“Under the terms of the agreement, CZ is prohibited from any present or future involvement in operating or managing the business," a Binance spokesperson confirmed to Decrypt.
Nevertheless, Zhao remains the largest shareholder of the crypto exchange and will thus retain his shareholder rights.
“As a shareholder, he will be looking at the performance of the company, and if things are not up to what he expects, as an investor, it's always his right to replace, nominate a new board of directors, or a new CEO,” Teng revealed in his Axios interview. “Shareholders can also always table a resolution."
CZ to complete jail sentence in September
Zhao, also known as CZ, will complete his jail sentence on September 29, after he pled guilty to money laundering and stepped down as CEO in a bid to keep the company alive over 10 months ago.
Zhao's guilty plea and resignation come following years of dismissive responses to various accusations about wrongdoing at the company. He later admitted to making “mistakes” and took personal responsibility, appointing Teng, previously Binance’s Global Head of Regional Markets, to take over as CEO.
In a tweet announcing his resignation as Binance CEO, Zhao said that he planned to take a break before pursuing other interests around the crypto and tech industries.
"My current thinking is I will probably do some passive investing, being a minority token/shareholder in startups in areas of blockchain/Web3/DeFi, AI and biotech," he wrote. "I am happy that I will finally have more time to spend looking at DeFi."
In the same post, Zhao stated that he doesn’t envision himself “being a CEO driving a start up again,” adding that he’s “content being a one-shot (lucky) entrepreneur.”