Binance Founder CZ’s Lifetime Ban Confirmed: U.S. Regulators Block Crypto Mogul’s Return to Power
The post Binance Founder CZ’s Lifetime Ban Confirmed: U.S. Regulators Block Crypto Mogul’s Return to Power appeared on BitcoinEthereumNews.com.
New reporting reveals Binance founder Changpeng Zhao, will not be able to manage the exchange again, although his large shareholding will ensure he retains at least some influence. Binance faced serious allegations in March of 2023, when the U.S. Commodity Futures Trading Commission (CFTC) accused the exchange of allowing users from sanctioned countries to use its platform in violation of sanctions laws and non-compliance with anti-money laundering program regulations. The case reached a pivotal moment on November 21st, 2023 when Binance agreed to a $4.3 billion settlement with the U.S. Department of Justice (DOJ). As part of the settlement, Changpeng ‘CZ’ Zhao (47), Binance’s founder and CEO, resigned from his role, and Richard Teng took over his position. Under the settlement terms, Zhao was restrained from holding any executive position or “operating” the exchange. However, the agreement left some ambiguity regarding the duration of this restriction, raising questions about the future scope of Zhao’s involvement in Binance. However, a report from Axios on September 5th has clarified that Zhao is now permanently restrained from managing or operating the cryptocurrency exchange for life. Changpeng ‘CZ’ Zhao is currently serving a four-month prison term in FCI Lompoc II. Image Source: US Bureau Of Prisons. The former Binance CEO is currently serving a four-month prison sentence with around 2000 other inmates at Federal Correctional Institution Lompoc II, a low-security federal prison three hours north of Los Angeles. As prisoner number 88087-510, Zhao is set to be released on September 29, this year. Although US authorities have made sure to refrain Zhao from managing the company directly, with an estimated 90% stake in Binance, it’s likely he will still have a major say in the company, including the ability to influence major decisions such as appointing or removing the CEO. Current Binance CEO Richard…
Filed under: News - @ September 7, 2024 8:07 am