Changpeng Zhao Banned for Life from Binance Management as U.S. Authorities Enforce Plea Agreement

Price data from AD Decrypt’s Art, Fashion, and Entertainment Hub reveals some important updates in the cryptocurrency world.

Former Binance CEO Changpeng Zhao is now banned for life from managing or operating the centralized crypto exchange. Current CEO Richard Teng confirmed this during an interview with Axios. He stated that this lifetime ban is a "key condition" of the plea agreement between Binance and U.S. authorities. This contradicts earlier reports that suggested Zhao would only face a temporary ban.

A spokesperson from Binance stated, “Under the terms of the agreement, CZ is prohibited from any present or future involvement in operating or managing the business.”

Even with this ban, Zhao remains the largest shareholder of the exchange. This means he still has rights as a shareholder. Teng explained, “As a shareholder, he will be looking at the performance of the company. If things aren’t up to his expectations, he has the right to replace or nominate a new board of directors or a new CEO.” He added that shareholders can also propose resolutions.

Zhao, known as CZ, will finish his jail sentence on September 29. He pled guilty to money laundering and stepped down as CEO over 10 months ago to help keep the company afloat. His resignation came after years of dismissing various accusations of wrongdoing. Later, he admitted to making “mistakes” and took responsibility for the issues, appointing Teng as the new CEO.

In a tweet announcing his resignation, Zhao mentioned he plans to take a break before exploring other interests in the crypto and tech sectors. He said, “I will probably do some passive investing, being a minority token/shareholder in startups in areas of blockchain/Web3/DeFi, AI, and biotech.” He also noted that he doesn’t see himself as “being a CEO driving a startup again,” adding he’s “content being a one-shot (lucky) entrepreneur.”

In other news, a report from the UK’s financial watchdog revealed that nearly 90% of applications from crypto firms were rejected in the past year due to inadequate protections against fraud. The Financial Conduct Authority (FCA) reported that “over 87% of crypto registrations were rejected, withdrawn, or refused for weak money laundering controls.”

Additionally, Robinhood’s crypto division has agreed to pay $3.9 million after accusations that it prevented customers from withdrawing digital assets over a four-year period. This action marks the first public enforcement by the California Department of Justice against a crypto firm in its ongoing efforts to protect consumers.

Circle’s Vice President, Yam Ki Chan, has warned that the U.S. risks falling behind in stablecoin regulation due to political stalemate. He highlighted this concern during an interview at Korea Blockchain Week, noting that major jurisdictions around the world have already set clear rules for what a well-regulated stablecoin should look like.