Ex-Binance CEO CZ Faced with Lifetime Ban from Binance
Former Binance CEO Changpeng Zhao (CZ) is expected to be released from US custody on 29 September, with a lifetime ban from operating or managing Binance as part of his plea deal with prosecutors.
Contrary to earlier reports suggesting a three-year ban, current Binance CEO Richard Teng confirmed it is permanent.
CZ will be banned forever from running Binance🚨#Bitcoin pic.twitter.com/t8wyzAz6Y6
— Wladi (@ScorpiionRos) September 5, 2024
Despite stepping down as CEO, CZ remains Binance's largest shareholder, with an estimated 90% stake, allowing him to retain considerable influence.
Teng noted that CZ can still propose changes to management and appoint new board members, even though he is barred from an official management role.
While his plea deal prohibits his direct involvement, CZ's substantial ownership keeps him closely tied to Binance's direction.
CZ's Deal was to Remain as Consultant to Binance
CZ first stepped down as CEO of Binance in November 2023, following charges related to the exchange's failure to maintain an effective anti-money laundering program.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ 🔶 BNB (@cz_binance) November 21, 2023
As part of his plea agreement, CZ handed over leadership to Teng, stating he would remain available for consultation but was stepping down to allow Binance to "walk and run" independently.
Binance's plea agreement, filed on 21 November, confirmed that CZ was barred from any current or future involvement in managing or operating the exchange.
However, this restriction was categorised as a "consideration" for prosecutors, reflecting remedial actions taken by Binance rather than a strict legal requirement.
Since CZ's departure, Binance has expanded its governance structure, moving from a single-director setup under CZ to a seven-member board.
To ensure compliance with the plea terms, two external agents appointed by the DOJ will monitor CZ's adherence to the ban on his participation in Binance's management.
Soon-to-Be a Free Man CZ Set to Exit Prison on 29 September
CZ is slated for release on 29 September, following his transfer from the Federal Correctional Institution in Lompoc to a rehabilitation center in Los Angeles, a routine step to assist inmates in reintegrating into society.
He has announced that he has no intention of returning to executive roles.
Instead, he plans to focus on investments in emerging sectors like blockchain, artificial intelligence (AI), and biotechnology.
CZ has expressed a strong interest in exploring opportunities within these fields post-Binance.
Breaking: CZ permanently banned from managing Binance, but remains largest shareholder. Set for release soon, he'll focus on investing in blockchain, AI, and biotech instead of leading the exchange. CZ's influence likely to persist despite leadership ban. 🚀 #Binance #CZ #Crypto pic.twitter.com/2HsQz9rjb7
— Tim Crypto (@inixanix) September 5, 2024
As for his future involvement in corporate leadership, the lifetime ban on managing Binance is irreversible.
Whether this restriction marks a significant retreat for CZ or opens new doors remains to be seen.
This turning point could either signal the end of his executive career or offer a fresh beginning in innovative industries.
