Binance Ban Zhao From Leadership But Influence Remains
In a shocking twist, Binance has officially barred its former CEO Changpeng Zhao from taking over the companys reins in the future. However, Richard Teng, the exchanges current CEO confirmed that Zhao will still maintain his position as the companys largest shareholder.
Since Zhaos resignation and conviction, there has been speculation regarding his future role in the firm. The ambiguity deepened after Binances plea agreement with the Department of Justice in November, While the agreement initially stated that he would be barred from managing or operating the company, it didnt explicitly specify the duration of this ban.
Tengs recent statement has finally put an end to all the rumors. This indicates that even after Zhao completes his prison sentence on September 29, he will be prohibited from holding executive or operational roles within Binance. Despite that, Zhao will maintain significant influence over the companys affairs.
As the majority shareholder, he will retain all shareholder rights, including the power to replace board members or even the CEO if he deems it necessary. Even though, he may not be directly involved in day-to-day operations, his ability to shape the companys direction through his shareholder rights could prove to be a major factor.
Binance: Compliance at the Forefront
Moreover, as per the DOJs settlement with Binance two external monitors were appointed to oversee the companys compliance with the agreement. These monitors will play a crucial role in ensuring that Zhaos activities do not conflict with the terms of the ban and that Binance operates transparently and lawfully.
As part of its invstmnt in complinc, the crypto trading platform is st to onboard 1,000 nw mploys by th nd of 2024. CEO Richrd Tng rvld tht mny of ths nw hirs will b lloctd to th complinc dprtmnt, which will grow from 500 to 700 mmbrs.
Furthermore, the firm also plns to spend ovr $200 million this year to mt rgultory rquirmnts. This budgt includs xpnss rltd to 2023 grmnt with th U.S. Dprtmnt of Justic, ddrssing concrns bout mony lundring on th pltform.
Read more: https://www.tronweekly.com/binance-ban-zhao-from-leadership/
Text source: TronWeekly
