Binance Bans CZ for Life After $50M Fine and Jail Time

Founder and former CEO of Binance, Changpeng Zhao, also known as CZ, has been banned from the exchange for life. Initial reports suggested that this ban would last for three years, but according to Axios, the ban is permanent. This ban prevents CZ from returning to his leadership position at Binance.

Authorities charged CZ with multiple violations related to Binance's operations in the United States. He resigned from his position as the CEO of Binance in November 2023, and Richard Teng took his place. In May 2024, a court sentenced him to four months in prison for financial crimes. Earlier reports claimed he would face at least three years in prison.

Authorities charged Zhao with several allegations, including offering unregistered securities, market manipulation, and failing to comply with anti-money laundering protocols. Despite being the largest crypto exchange globally, Binance faced legal issues. Many believe that CZ's decision to step down as CEO was the first part of his agreement with US authorities. The second part of the agreement is banning him from holding any executive position within the exchange. This was a significant condition of the agreement between Binance and US authorities.

When CZ was the CEO of Binance, he was the sole director of the company, but after his departure as company head, there are now seven board members. The Department of Justice (DOJ) appointed two external board members to monitor Binance and ensure it adheres to the necessary protocols.