Binance faced serious allegations in March of 2023, when the U.S. Commodity Futures Trading Commission (CFTC) accused the exchange of allowing users from sanctioned countries to use its platform in violation of sanctions laws and non-compliance with anti-money laundering program regulations. The case reached a pivotal moment on November 21st, 2023 when Binance agreed to a $4.3 billion settlement with the U.S. Department of Justice (DOJ). As part of the settlement, Changpeng ‘CZ’ Zhao (47), Binance’s founder and CEO, resigned from his role, and Richard Teng took over his position. 

Under the settlement terms, Zhao was restrained from holding any executive position or “operating” the exchange. However, the agreement left some ambiguity regarding the duration of this restriction, raising questions about the future scope of Zhao’s involvement in Binance.

However, a report from Axios on September 5th has clarified that Zhao is now permanently restrained from managing or operating the cryptocurrency exchange for life.

Changpeng ‘CZ’ Zhao is currently serving a four-month prison term in FCI Lompoc II. Image Source: US Bureau Of Prisons.

The former Binance CEO is currently serving a four-month prison sentence with around 2000 other inmates at Federal Correctional Institution Lompoc II, a low-security federal prison three hours north of Los Angeles. As prisoner number 88087-510, Zhao is set to be released on September 29, this year.

Although US authorities have made sure to refrain Zhao from managing the company directly, with an estimated 90% stake in Binance, it’s likely he will still have a major say in the company, including the ability to influence major decisions such as appointing or removing the CEO. 

Current Binance CEO Richard Teng said to Axios Report. “As a shareholder, he will be looking at the performance of the company, and if things are not up to what he expects, as an investor, it’s always his right to replace, nominate a new board of directors, or a new CEO … shareholders can also always table a resolution.”

Binance Executive Facing Charges In Nigeria

Things are not tough for just Zhao, but one of his closest allies too. Tigran Gambaryan, Binance’s head of financial compliance, was one 161 people who sent a  letter to US Judge Richard A. Jones requesting leniency for Zhao before he was sentenced to four months imprisonment in April.

Now Gambaryan is facing a legal battle in Nigeria for allegations of laundering more than $35 million in his role at Binance. In addition to his legal battles, Tigran’s health has reportedly Gambaryan, prompting him to seek bail on medical grounds. The situation has drawn attention, with Binance CEO Richard Teng expressing concern about Tigran’s well-being in a post on X.

Binance’s financial compliance head Tigran Gambaryan, is facing money laundering charges in Nigeria.

Binance Palestinian Claims Debunked 

The exchange also has attracted a lot of criticism from Palestine recently. Sulaiman Ahmad, a Palestinian journalist, said in an X post on 28 August 2024 that the crypto assets related to all Palestinian people have been seized. “Cryptocurrency exchange Binance has seized all Palestinian assets at Israel’s request.”

In response, current Binance’s Teng refuted this statement on the X platform. Describing Ahmad’s reporting as “FUD” (fear, uncertainty and doubt), Teng said only a limited number of user accounts, linked to illicit funds, were blocked from transacting. “There have been some incorrect statements about this,” he said. “As a global crypto exchange, we comply with internationally accepted anti-money laundering legislation, just like any other financial institution.”