Changpeng 'CZ' Zhao, the former CEO of Binance, is scheduled for release from a United States prison in a few weeks. However, his future in the cryptocurrency world seems bleak because, according to his plea deal, he can't ever be involved with Binance again.

Lifetime Ban

According to a September 5 Axios report, Binance's current CEO, Richard Teng, revealed that CZ had received a lifetime ban from managing or operating the exchange.

This corrects earlier reports that suggested the ban would last only three years. The crypto exchange confirmed that Zhao was barred from holding a management position, although this was not explicitly required by either Zhao's or Binance's plea agreements.

CZ's Plea Deal

In November 2023, US authorities announced a $4.3 billion settlement with Binance. As part of this settlement, Zhao pleaded guilty to one felony charge related to violations of the Bank Secrecy Act.

In April, a judge sentenced the former CEO to four months in prison. CZ is expected to be released on September 29.

The plea deal also required CZ to step down as Binance's CEO. Richard Teng replaced him. At the time, Zhao stated that he would 'remain available to the team to consult as needed' but was stepping down to let Binance' walk and run.'

According to Binance's plea agreement filed on November 21, the crypto firm agreed that CZ was prohibited from 'any present or future involvement in operating or managing' the exchange. However, this was listed as a 'consideration' for prosecutors and not a legal requirement.

Financial Penalties and Ongoing Cases

The settlement also required Zhao to pay US regulators $50 million personally. However, Binance's legal battles are far from over. As of September 2024, the case with the US Securities and Exchange Commission (SEC) remains ongoing. This is despite recent Supreme Court opinions that could limit the SEC's authority in crypto enforcement cases.

'The lifetime ban adds another layer of complexity to Binance's ongoing legal challenges,' said an industry expert who wished to remain anonymous.

No Comment from Binance

Cointelegraph reached out to Binance for comment but has yet to receive a response at publication. Changpeng Zhao was also unavailable for comment. The evolving situation leaves many questions needing to be answered about the future of Binance and its leadership.

CZ and Binance continue to shine as the cryptocurrency world watches closely. The lifetime ban, financial penalties, and ongoing legal challenges paint a complex picture for one of the world's largest crypto exchanges.