Binance founder and former CEO Changpeng Zhao (CZ) has been banned for life from managing the cryptocurrency exchange.
Initially, reports suggested that Zhao would be unable to return to Binance for a period of three years. However, Axios later revealed that the ban is permanent, preventing Zhao from ever resuming a leadership role at the platform.
CZ Faces Lifetime Suspension from Binance
Zhao’s legal troubles began when US authorities charged him with multiple violations tied to Binance’s operations. The allegations included offering unregistered securities, market manipulation, and deficiencies in the platform’s anti-money laundering (AML) protocols.
Despite Binance’s position as one of the world’s largest cryptocurrency exchanges, the company has faced relentless regulatory scrutiny, leading to serious legal challenges for its founder. In November, Zhao resigned as CEO of Binance as part of a deal with the US Department of Justice. The agreement required his permanent removal from the “management or operations” of the company.
“I’m sorry. I believe the first step in taking responsibility is to fully recognize the mistakes. Here I failed to implement an adequate anti-money laundering program. I realize now the seriousness of that mistake,” Zhao said in court.
