According to Richard Teng, the current CEO of Binance, Changpeng Zhao would be banned for life from any responsibility within Binance. However, since the latter remains a majority shareholder, he could still indirectly influence the choices of the most popular exchange.
Changpeng Zhao Banned For Life From Holding Leadership Position At Binance
Changpeng Zhao, the founder and former CEO of cryptocurrency exchange Binance, is expected to be released in a few weeks. His 4-month prison sentence was previously negotiated in a deal between the US Department of Justice (DOJ) and his lawyers.
The plea agreement reached in November between Binance and the DOJ has been open to varying interpretations, with one indicating that CZ was banned from “ to lead or manage » the company.
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The current CEO of Binance, Richard Teng confirmed to our colleagues at Axios that it was indeed a lifetime ban. and not a 3-year ban, which had been indicated in some media.
However, Richard Teng also clarified what rights CZ will have as a majority shareholder upon his release from prison.
Binance: the leading crypto exchange platform
What are CZ's rights as a majority shareholder of the world's largest crypto exchange?
Although Changpeng Zhao is banned from any senior position at Binance for life, he still retains his rights as the company's majority shareholder.
As a shareholder, he will look at the performance of the company, and if things are not up to his expectations, as an investor, he always has the right to replace, to appoint a new board of directors, or a new CEO…
So it would seem that CZ is not completely deprived of influence within Binance, although he certainly will not play a day-to-day role in running the company.
👉 Also in Binance news – Binance: the trial of one of the exchange’s managers in Nigeria has just begun
In any case, the latter seems to have lost interest in the management of Binance as evidenced by his letter addressed to the American Department of Justice (DOJ), where he declared: “ This life no longer exists for me “.
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Source: Axios
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Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide weekly fundamental analysis.
Theo Zananiri
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