Although it had not been clear in the original press release, Changpeng Zhao’s outing from Binance has now been clarified as a lifetime ban from the cryptocurrency exchange. Indeed, current CEO Richard Teng discussed the suspension in a recent interview with Axios.
Zhao was the founder and CEO of the cryptocurrency exchange during its rise to prominence. Yet, he was also its head amid its darkest hour. Late last year, the firm pleaded guilty to a host of federal crime violations. The settlement penalty was the “largest corporate resolution to include criminal charges for an executive.”
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Zhao Gets Binance Ban, Current CEO Affirms
Binance had long been a pillar in the crypto market. it was among the strongest brands that the industry had to offer. Yet, that changed in 20233. The platform was subject to a years-long investigation by the US Department of Justice that culminated in a massive fine levied on the firm.
Moreover, it also led to a significant shift in leadership. Changpeng Zhao, the firm’s founder and CEO had been ousted from the company. Original reports note that the executive was to step down as a part of the plea agreement. However, that does not appear to be the case now.
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According to Richard Teng, Changpeng Zhao’s Binance exit was actually a lifetime ban. Indeed, an Axios report notes that Zhao is barred from taking any leadership position within the cryptocurrency exchange. Although chances of his return were slim, there was potential that, somewhere down the line, he could resume a role at the platform.
That is certainly not the case now. Teng notes that Zhao’s lifetime ban was a critical condition of the settlement agreement between Binance and the DOJ. In addition, the crypto exchange was ordered to pay more than $4 billion worth of financial penalties.