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.
🔎 Binance Review (2024): The Best Crypto Platform in the World?
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 “.
Cryptoast Research: Don't Spoil This Bull Run, Surround Yourself With Experts
Source: Axios
The #1 Crypto Newsletter 🍞
Receive a daily crypto news recap by email đź‘Ś
What you need to know about affiliate links. This page may feature investment-related assets, products, or services. Some links in this article may be affiliate links. This means that if you purchase a product or sign up for a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and only invest within the limits of their financial capacities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with a high return potential implies a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of these savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.