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Changpeng Zhao, former CEO of Binance, is permanently banned from managing or operating the crypto exchange due to the terms of his plea deal, according to current CEO Richard Teng in an interview with Axios.
What's the Scoop?
- Lifetime Ban: Zhao will be banned from involvement in Binance’s operations as part of a plea deal with U.S. authorities, rather than just being banned for a few years, as previously thought.
- Shareholder Rights: Despite his ban, Zhao, as Binance’s largest shareholder, can influence the company's leadership through his voting rights.
- Completion of Jail Sentence: Zhao will complete his jail sentence for money laundering charges on September 29th.
Bankless Take:
Despite a lifetime ban, CZ’s shareholder rights will give him the authority to influence the future of the exchange, like nominating a new board of directors or CEO, if he sees fit. This dynamic suggests that we can expect CZ to remain a figurehead of the exchange, which has weathered its fair share of storms amid Zhao’s arrest and the exchange’s exit from the U.S. With this chapter closing, it will be interesting to see how Binance, under Teng’s leadership, adapts to this new phase of its development.
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