News

Changpeng Zhao Ban Limits CEO Control But Preserves Shareholder Power: Report

Key Points:

  • Binance has banned former CEO Changpeng Zhao from running the company for life, but he retains significant influence as the majority shareholder⁠.
  • Zhao is prohibited from day-to-day activities at Binance, but the extent of his permissible involvement remains unclear⁠.
Changpeng Zhao banned from running the company for life, but as a majority shareholder, he retains significant influence.
Changpeng Zhao Ban Limits CEO Control But Preserves Shareholder Power: Report

According to Axios, Binance has banned former CEO Changpeng Zhao from overseeing the company’s current CEO, Richard Teng, for life. The ban does not seem to impact Zhao much since he is the majority shareholder in Binance.

CZ, of course, obviously being the largest shareholder, will retain all shareholder rights,” says Teng

Details and Implications of Changpeng Zhao Ban

The ban follows a November plea agreement with the U.S. Department of Justice that left some questions open over Zhao’s role. Teng said that though he cannot manage or operate Binance, Zhao enjoys full shareholder rights.

These include, among other things, the right to check on the company’s performance, vote on new board members, and propose a new chief executive if he does not like the current management.

Zhao is prohibited from engaging in day-to-day activities at Binance. However, it is still unclear to what extent Zhao will be permitted to be involved; he may be allowed to act, for example, as a consultant.

Read more: Former FTX Exec Ryan Salame Fails to Save His Partner

Legal Experts Weigh In

Besides, legal experts say the DOJ’s settlement language does not obligate the ban as part of the plea deal. Binance argues that Zhao is “prohibited from any present or future involvement in operating or managing the business.”

After the plea agreement, Zhao said he would devote himself to investing in blockchain, AI, and biotech firms, saying his life as the leader of Binance “no longer exists.” The next few years will prove critical as Binance defines its relationship with its majority shareholder more clearly under unprecedented pressure from U.S. officials.

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.

Recent Posts

Dtec Announces Global Partnership with DİZAYNVIP to Elevate AI-Driven Mobility Design  

Dtec and DİZAYNVIP partner to merge AI technology with luxury vehicle design, revolutionizing smart mobility…

21 mins ago

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

4 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

7 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

9 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

10 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

13 hours ago

This website uses cookies.