Binance CEO Richard Teng told Axios that Changpeng Zhao, the founder and former CEO, will no longer lead Binance. This statement follows the US Department of Justice (DOJ) imposing a lifetime ban on Zhao's leadership.
Lifetime Leadership Ban
The US Department of Justice has imposed a lifetime ban on Changpeng Zhao. Initially, it was assumed that the ban would last for several years, but the final decision proved to be more stringent.
Zhao's Admission of Guilt
Zhao pleaded guilty to enabling money laundering and violating United States sanctions. Consequently, he agreed to step down as Binance's CEO and pay a $50 million fine. Additionally, in April, Zhao was sentenced to four months in prison. After serving time in a low-security federal prison in Lompoc, California, he was transferred to a halfway house, where he will remain until the end of September.
New Binance CEO
Richard Teng, who joined Binance in 2021 and headed its Singapore-based unit, took over as CEO. Teng has repeatedly emphasized the importance of regulatory compliance since taking on the new role. Although Changpeng Zhao still holds an estimated 90% stake in Binance, his attempts to influence the company could be risky due to close scrutiny from US authorities.
The situation surrounding Changpeng Zhao and his removal as Binance's CEO continues to draw attention. The new company leader, Richard Teng, stresses the importance of regulatory compliance in his work.
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