CZ permanently barred from Binance management under new settlement terms

Binance’s current CEO, Richard Teng, has confirmed that Changpeng Zhao, the former head of the cryptocurrency exchange, is permanently barred from any management or operational roles at Binance. This comes as a significant update from previous reports suggesting a temporary ban.

In a recent statement, Teng clarified that Zhao’s plea deal, finalized in November 2023, includes a lifetime prohibition from overseeing or managing the exchange. This is a stricter measure than the initially reported three-year restriction. 

The ban was part of a larger $4.3 billion settlement with U.S. authorities, which saw Zhao pleading guilty to a felony charge related to the Bank Secrecy Act.

Zhao, who is set to be released from U.S. prison on September 29, had previously agreed to step down as CEO, with Teng taking over the role. 

While Zhao offered to remain available for consultation, the new arrangement precludes him from any direct involvement in Binance’s operations.

The settlement also required Zhao to pay $50 million in personal fines.

However, Binance’s ongoing legal battles with the U.S. Securities and Exchange Commission (SEC) are still unresolved, despite recent Supreme Court rulings that may affect the SEC’s jurisdiction over cryptocurrency cases.