Ex-Binance CEO Changpeng Zhao Faces Lifetime Ban From the Crypto Exchange
Changpeng Zhao, the former CEO of Binance, is set to be released from US custody soon, but he may face a permanent ban from managing or running the exchange as part of his plea deal.
Recent reports indicate that Zhao will not be allowed to return to a leadership role at Binance for life, contrary to earlier expectations of a three-year ban.
In November 2023, Zhao agreed to a $4.3 billion settlement with US authorities, pleading guilty to a felony charge related to the Bank Secrecy Act. He was sentenced to four months in prison, with his release anticipated on September 29.
Under the terms of his plea, Zhao stepped down from his role as CEO of Binance, a position now held by Richard Teng. Although Zhao indicated he would still be available for consultation, he formally stepped down to allow Binance to move forward independently.
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The plea agreement stated that Zhao was barred from any involvement in the management or operation of Binance, but this condition was noted as a consideration in the case rather than a strict legal requirement. Binance and Zhao have not yet commented on this development.
In addition to his prison sentence, Zhao was required to pay $50 million to US regulators. However, Binance is still facing ongoing legal challenges with the US Securities and Exchange Commission, which may be affected by recent Supreme Court rulings on crypto regulation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
