Binance CEO's Operational Role Banned by DOJ Settlement

Binance CEO's Operational Role Banned by DOJ Settlement

Binance, the world's largest cryptocurrency exchange by trading volume, has confirmed that its founder and former CEO, Changpeng Zhao (CZ), is permanently banned from having an operational role at the company. This development comes as part of Binance's resolution with the United States Department of Justice (DOJ) over allegations of money laundering and sanctions violations. In a statement to Axios, Binance's current CEO, Richard Teng, said that "it's true that as part of our resolution with the Department of Justice in the United States that CZ, our founder and former CEO, is permanently banned from having an operational role at Binance." Teng went on to explain that "while it's true that CZ will not be able to have an operational role, he remains the controlling shareholder. He will continue to be able to shape the direction of Binance as its controlling shareholder, including appointing the CEO and calling board meetings." Previously, Zhao was the sole member of Binance's board of directors, but as part of its settlement with the DOJ, Binance has formed a seven-member board, including two outside directors who will serve as checks and balances on the board. Zhao, who pleaded guilty and was sentenced as part of a settlement with the DOJ in November of last year, is scheduled to be released from prison on September 29th.