Binance founder and former CEO Changpeng Zhao who is currently serving a four-month prison sentence with around 2000 other inmates at Federal Correctional Institution Lompoc II, will not be able to manage the exchange again. This has been reported by the Axios which wrote that Zhao is permanently restrained from managing or operating cryptocurrency exchange for life. It’s normal for someone to ask whether a person with a 90% stake in a company will influence the decisions of the company or not?
The answer is obvious and current Binance CEO Richard Teng said to Axios Report. “As a shareholder, he will be looking at the performance of the company, and if things are not up to what he expects, as an investor, it’s always his right to replace, nominate a new board of directors, or a new CEO … shareholders can also always table a resolution.”
The company has faced serious allegations of allowing users from sanctioned countries to use its platform in violation of sanctions laws and non-compliance with anti-money laundering program regulations. This case did reach a point where the company agreed to pay $4.3 billion as a settlement with the US Department of Justice (DOJ). As part of this settlement, Binance’s founder and CEO resigned from his role and was restrained from holding any executive position or operating the company. At that time, a question was left unaddressed and that was about the period until the founder would not be holding any position. Now the answer is out and we know that Zhao will never be holding any position in the company.
