Changpeng “CZ” Zhao, the former CEO of Binance, may be permanently banned from managing the crypto exchange as part of his plea deal with U.S. prosecutors.
According to a report by Axios on September 5, Binance’s current CEO Richard Teng confirmed that CZ received a lifetime ban, rather than the three-year ban initially reported by some news outlets. The crypto exchange clarified that while Zhao is no longer allowed to hold a management position, this restriction wasn’t explicitly stated in the plea agreements between CZ, Binance, and U.S. authorities.
Binance’s $4.3 Billion Settlement
In November 2023, U.S. authorities reached a $4.3 billion settlement with Binance. As part of this deal, CZ pleaded guilty to one felony charge for violating the Bank Secrecy Act. In April 2024, a judge sentenced Zhao to four months in prison, and he is expected to be released on September 29.
As part of the settlement, Zhao stepped down from his role as CEO and was replaced by Richard Teng. While stepping down, CZ mentioned that he would remain available to advise the team but would no longer serve as CEO to allow Binance to move forward.
Legal Implications of the Plea Deal
According to Binance’s plea agreement, filed on November 21, Zhao is prohibited from any future involvement in managing or operating the exchange. While this was considered part of the “remedial measures” Binance took to settle the case, it was not a legal requirement imposed by the court.
The plea deal also required CZ to personally pay $50 million to U.S. regulators. Binance is still facing ongoing legal challenges with the U.S. Securities and Exchange Commission (SEC), despite recent Supreme Court rulings that could potentially limit the SEC’s power in regulating the crypto industry.
