Zhao’s pivot to education amid DOJ plea deal
The post Zhao’s pivot to education amid DOJ plea deal appeared on BitcoinEthereumNews.com.
Despite a lifetime ban from day-to-day management, former Binance CEO Changpeng Zhao’s influence persists as a majority shareholder, even as he shifts focus to educational ventures. Despite being banned from managing one of the largest crypto exchanges by trading volume Binance as part of a plea agreement with the U.S. Department of Justice, former CEO Changpeng Zhao could still maintain a significant degree of influence at the company, thanks to his status as its majority shareholder, Axios has learned. Legal experts suggest that the language of the agreement leaves room for interpretation about Zhao’s involvement, creating uncertainty about how much control he might continue to wield behind the scenes. The DOJ’s plea deal with Binance, finalized in November 2023, prohibits Zhao from “managing or operating” the company, but the specifics of this restriction are less clear. While reports initially suggested a three-year ban, Binance CEO Richard Teng eventually confirmed in a commentary to Axios that the restriction is, in fact, a lifetime ban from day-to-day management. “CZ, of course, obviously being the largest shareholder, will retain all shareholder rights.” Richard Teng, Binance CEO However, Teng clarified that Zhao, as the largest shareholder, still retains “all shareholder rights,” including the ability to nominate board members and replace executives. Shift to education This legal ambiguity raises questions about what constitutes “managing or operating” the company. For instance, Zhao could theoretically act as a consultant or exercise influence over major decisions without violating the terms of the agreement, the report notes. My next project. @GiggleAcademy (No logo yet) Free basic (grade 1-12 ish) education, for all.No revenue.Gamified.Adaptive. Read the Concept Paper at https://t.co/knqmZF0sQ8 We are HIRING. Small team, work directly with CZ. — CZ 🔶 BNB (@cz_binance) March 19, 2024 Earlier, Zhao hinted at a shift toward education following his departure from Binance.…
Filed under: News - @ September 6, 2024 10:24 am