Outside Source
Despite a lifetime ban from day-to-day management, former Binance CEO Changpeng Zhao’s influence persists as a majority shareholder, even as he shifts focus to educational ventures.
Despite being banned from managing one of the largest crypto exchanges by trading volume Binance as part of a plea agreement with the U.S. Department of Justice, former CEO Changpeng Zhao could still maintain a significant degree of influence at the company, thanks to his status as its majority shareholder, Axios has learned.
Legal experts suggest that the language of the agreement leaves room for interpretation about Zhao’s involvement, creating uncertainty about how much control he might continue to wield behind the scenes.
The DOJ’s plea deal with Binance, finalized in November 2023, prohibits Zhao from “managing or operating” the company, but the specifics of this restriction are less clear. While reports initially suggested a three-year ban, Binance CEO Richard Teng eventually confirmed in a commentary to Axios that the restriction is, in fact, a lifetime ban from day-to-day management.
“CZ, of course, obviously being the largest shareholder, will retain all shareholder rights.”
Richard Teng, Binance CEO
However, Teng clarified that Zhao, as the largest shareholder, still retains “all shareholder rights,” including the ability to nominate board members and replace executives.
Shift to education
This legal ambiguity raises questions about what constitutes “managing or operating” the company. For instance, Zhao could theoretically act as a consultant or exercise influence over major decisions without violating the terms of the agreement, the report notes.
Earlier, Zhao hinted at a shift toward education following his departure from Binance. In March 2024, he unveiled Giggle Academy on his X page, an educational platform designed to provide free basic education to underprivileged children in developing countries.
The platform features a “gamified” and adaptive approach, rewarding progress with non-fungible token badges, but it avoids using cryptocurrencies, separating itself from the crypto sphere. While Zhao’s role as a majority shareholder at Binance remains significant, his new educational venture suggests a move toward creating a broader legacy beyond the crypto industry.
This article first appeared at crypto.news
