Changpeng Zhao, the founder of Binance
Changpeng Zhao pays fines, barred from Binance management under new US settlement terms
Changpeng Zhao, the former head of the cryptocurrency exchange, has been permanently barred from any management or operational roles at Binance.
This was part of the pegs of the new settlement, according to Binance’s current CEO, Richard Teng.
Teng, who spoke in a statement, stated that Zhao’s plea deal, finalized in November 2023, includes a lifetime prohibition from overseeing or managing the exchange.
The ban, which appears a stricter measure than the initially reported three-year restriction, was part of a larger $4.3 billion settlement with U.S. authorities.
Zhao had pleaded guilty to a felony charge related to the Bank Secrecy Act.
Indeed, Zhao, who would now 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.
In spite of this, 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.
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