Although CZ can no longer become Binance’s CEO, he remains the company’s largest shareholder.
An Axios report recently revealed that the former Binance CEO Changpeng Zhao (CZ) has been permanently banned from managing Binance, the company he founded in 2017. The latest update comes a few weeks before CZ’s release from the United States prison.
Before now, several reports implied that CZ would only face a three-year ban from Binance, prohibiting him from returning to the company in any capacity. However, the recent report suggests a different outcome.
CZ Permanently Banned. In What Sense?
The report referenced Binance’s current CEO, Richard Teng, as the source of the information. Teng confirmed that CZ received a lifetime ban from “managing” the platform, noting that the ban was a vital condition of the agreement between Binance and U.S. authorities.
Although CZ stepped down as CEO, he remains the largest shareholder, allowing him to retain significant influence over the company’s direction. He can propose management changes or appoint new board members. Clearly, he was not totally banned from Binance, but only from managerial duties and functions.
To ensure compliance with the terms of the agreement, two external agents appointed by the Department of Justice (DOJ) will monitor CZ’s adherence to the ban on participating in the management of the exchange.
Binance and CZ’s New Chapter
Since the departure of the former CEO, Binance’s board of directors has expanded to seven members, contrasting CZ’s being the sole director previously. This has further cemented the company’s commitment to regulatory compliance as agreed in its signed terms with the authorities.
On the other hand, CZ has announced via X tweet that he will not seek executive roles in any companies moving forward. The exchange founder has no further intention of keeping his executive position at Binance but is willing to make a shift in his career.
Instead of pursuing executive roles, he plans to invest in innovative industries like blockchain, artificial intelligence (AI), and biotechnology. He is eager to explore opportunities in these emerging fields, which will be a new chapter in his career after departing from Binance leadership.