Changpeng Zhao, the originator and former Chief Executive Officer of Binance, has received a permanent suspension from the firm as a result of legal infractions.
Zhao has been accused by the US Department of Justice of breaching U.S. security laws, notably by failing to uphold an efficient anti-money laundering (AML) program. Binance incurred more than $4 billion in legal liabilities.
Zhao resigned as CEO in November 2023, and Richard Teng assumed the post. The primary stipulation of the deal was for Zhao to resign from his CEO role and be prohibited from assuming any other position within the company.
Binance CEO Richard Teng has affirmed that Changpeng Zhao will not resume his role as the leader of Binance. However, Zhao will retain substantial influence as a majority shareholder.
The crypto exchange is now recruiting a large number of new staff members, with a particular emphasis on positions related to regulatory compliance. Binance allocates more than $200 million each year towards ensuring adherence to regulatory requirements.
Philip Martin, Natalie Tang, and Yatin Khanna have filed a lawsuit claiming that Binance’s insufficient Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols allowed stolen assets to be laundered through its platform.
