CZ Will Never Run Binance Again

Binance CEO Richard Teng has told media outlet Axios that disgraced founder Changpeng Zhao will never spearhead the company again.

The Department of Justice (DOJ) has actually prohibited Zhao from running Binance for life. Prior to that, some pundits assumed that the ban would last only several years. 

Zhao pleaded guilty to enabling money laundering and violating US sanctions.

The highly influential Binance founder agreed to step down as the CEO of the crypto behemoth and shell out a $50 million fine. 

In April, Zhao also ended up being sentenced to a total of four months behind bars. 

After being initially held in a low-security US federal prison for male inmates in Lompoc, California, the Binance founder was then transferred to a halfway house, which is an institution for people who need educational, social, psychiatric, and other services before being integrated back into society. The former Binance boss is expected to serve the remainder of his prison sentence there before eventually being released in late September. 

Teng, who joined the exchange back in 2021 to spearhead its Singapore-based unit, ended up replacing CZ. The new Binance boss has repeatedly stressed the importance of regulatory compliance since taking on his new job. 

CZ, of course, owns an estimated 90% stake in the Binance exchange, which means that he will have a major say in the company's future. 

That said, legal expert Yesha Yadav recently stated that possible attempts to assert himself could be risky for the Binance founder given that he will remain under close scrutiny from US officials.