- Richard Teng verified that Changpeng Zhao is banned from holding any leadership role at Binance.
- Binance, under new CEO Richard Teng, is focusing on regulatory compliance.
Founder and former CEO of Binance, Changpeng Zhao is banned from Binance. The company has given him a lifetime suspension. Axiospro report states that he is forbidden to restrict him from returning to his leadership position at Binance. He is banned for life from the leadership under a deal with US authorities due to legal violations.
Last year, the Department of Justice (DOJ) accused Changpeng Zhao, the CEO of Binance and also the crypto exchange, of violating U.S. security laws. Specifically, Zhao was found to have failed to maintain an effective anti-money laundering (AML) program, which contravened the Bank Secrecy Act (BSA). As a result of these infractions, Binance faced charges amounting to over $4 billion for his legal troubles.
He stepped down from the position of CEO in November 2023, after which Richard Teng took over. Previous reports claimed that he would be sentenced to jail for three years, but he was sentenced to four months. The main condition of the agreement between Binance and US authorities was to make CZ step down from his CEO position and to ban him from taking any other position in the company.
Binance CEO Richard Teng has confirmed that Changpeng Zhao will never return as the leader of Binance. However, Zhao will continue to hold significant influence in the company as a majority shareholder.
Binance Under Richard Teng
Binance is now hiring thousands of new employees, with the majority of these positions focused on compliance roles. The crypto exchange is investing over $200 million annually in regulatory compliance. Richard Teng, the CEO of Binance, has outlined the company’s employment goals for the world’s largest crypto trading platform.
In this lawsuit, plaintiffs Philip Martin, Natalie Tang, and Yatin Khanna allege that Binance’s inadequate Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures enabled stolen funds to be laundered through its platform. Although none of the plaintiffs had accounts with Binance, their stolen cryptocurrency ended up on Binance.
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