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Amid the legal challenges the former CEO faces, Binance continues to expand its offerings in the crypto space.
Changpeng ‘CZ’ Zhao, the former CEO of Binance Holdings Ltd, has been permanently barred from operating or running the exchange. However, as a majority shareholder, he still has a powerful influence on the platform’s management.
CZ Barred Permanently from Managing Binance
According to a recent report from Axios, CZ’s ban from Binance’s management role is for life, not simply three years, as many news sites previously claimed. The confusion in CZ’s ban duration seems to stem from unclarified statements in Binance’s plea deal with the US Department of Justice (DOJ).
Per the Binance’s plea agreement, Binance agreed that CZ was prohibited from “any present or future involvement in operating or managing” the exchange. However, the move was classified as a “consideration” for prosecutors as part of Binance’s remedial measures rather than a legal necessity.
This clarification gave room for interpretation. However, Binance CEO Richard Teng has confirmed in an interview with Axios that the ban is indeed for life.
CZ stepped down as CEO of Binance in November 2023 and agreed to pay a $50 million fine as part of Binance’s plea agreement. CZ pleaded guilty to charges of money laundering and violations of US sanctions. At the time, CZ said he would remain available to the team to consult as needed but was stepping down as CEO to let Binance run its course.
In April, CZ was sentenced to four months in prison. The former CEO was first held in a low-security US federal prison for male inmates in Lompoc, California. He was later transferred to a halfway house, an establishment for those needing social, mental, educational, and other services before reintegration into society. He is expected to serve the remainder of his prison sentence there before being released later this month.
Binance Moves Forward With Expansion Initiatives
Amid the legal challenges the former CEO faces, Binance continues to expand its offerings in the crypto space. For instance, the exchange recently announced the launch of a new Solana (SOL) staking product, BNSOL. This service, scheduled for launch in late September, would enable users to safely stake their SOL tokens on the exchange while maintaining access to their funds.
The new offering is developed using Solana’s Stake Pool Program and has been audited by multiple security firms to ensure the safety of users’ funds.
In addition to this new service, Binance also announced its intention to add Toncoin (TON) to its Simple Earn-locked products. According to the announcement, users who sign up for full TON subscriptions on Simple Earn Locked Products during the Promotion Period can receive up to 5.9% in APR rewards.
Overall, Binance’s expansion initiatives across several regions, despite its legal challenges, highlight its commitment and confidence in the future of crypto and blockchain.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Binance News, Cryptocurrency News, News
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
