Binance CEO says CZ is banned from managing or operating the exchange
Changpeng “CZ” Zhao, expected to be released by United States prison authorities in a few weeks, could be permanently enjoined from operating or managing the crypto exchange Binance as part of his plea deal with prosecutors.
According to a Sept. 5 Axios report, Binance CEO Richard Teng said CZ received a lifetime ban from managing or operating the exchange, not just three years, as many news outlets previously reported. The crypto exchange reportedly said the former CEO was barred from a management position at the firm, though it did not appear to be explicitly required by either Zhao’s or Binance’s plea agreements.
CZ’s plea deal
In November 2023, US authorities announced a $4.3 billion settlement with Binance, in which Zhao pleaded guilty to one felony charge related to violations of the Bank Secrecy Act. In April, a judge sentenced the former CEO to four months in prison. He is expected to be released on Sept. 29.
As part of the plea deal, CZ stepped down as Binance’s CEO and was replaced by Teng. Zhao said at the time that he would “remain available to the team to consult as needed” but was stepping down as CEO to let Binance “walk and run.”
According to Binance’s plea agreement filed on Nov. 21, the crypto firm agreed that CZ was prohibited from “any present or future involvement in operating or managing” the exchange. However, the move was listed as a “consideration” for prosecutors as part of the “remedial measures” Binance had taken and not a legal requirement.
Related: Binance is now ‘totally different’: Interview with CEO Richard Teng
Cointelegraph contacted Binance for comment but did not receive a response at the time of publication. Zhao was unavailable for comment.
The settlement required Zhao to personally pay US regulators $50 million. However, Binance’s case with the US Securities and Exchange Commission was ongoing as of September 2024 despite recent Supreme Court opinions that could limit the SEC’s authority in crypto enforcement cases.
Magazine: CZ and Binance face new lawsuit, RFK Jr suspends campaign, and more: Hodler’s Digest Aug. 18 – 24
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Uniswap sets a new record with $38 billion monthly trading volume
Share link:In this post: Uniswap’s monthly trading volume has surged by almost 50% in November. The monthly fee generation has outdone Ethereum in some instances. Solana’s trading volume rose by over 50%, highlighting DeFi’s move to regain blockchain control.
Ethereum ETFs blitz Bitcoin ETFs over last 4 trading days amid ETH rally
Russia Pushes Crypto Tax Reform Amid Bitcoin Surge
However, Russian miners of cryptocurrencies will be exempt from paying VAT (Value Added Tax) on the coins they mine.
XRP Lawsuit: US Judge Approves Ripple’s Judgment Request
Judge Phyllis Hamilton approved a joint request from both parties to move forward with the final judgment while maintaining a stay on the plaintiff’s class claims.