Richard

Shift

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 <a href="https://crypto.news/tag/binance/" target="_blank" rel="noopener noreferrer nofollow">Binance</a> as part of a plea agreement with the U.S. Department of Justice, former CEO <a href="https://crypto.news/tag/changpeng-zhao/" target="_blank" rel="noopener noreferrer nofollow">Changpeng Zhao</a> could still maintain a significant degree of influence at the company, thanks to his status as its majority shareholder, Axios <a href="https://www.axios.com/pro/fintech-deals/2024/09/04/binance-influence-changpeng-zhao" target="_blank" rel="noopener noreferrer nofollow">has learned</a>.
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 <a href="https://www.justice.gov/opa/gallery/binance-and-ceo-plead-guilty-federal-charges-4b-resolution" target="_blank" rel="noopener noreferrer nofollow">plea deal</a> 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.
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 “CZ, of course, obviously being the largest shareholder, will retain all shareholder rights.”
 Richard Teng, Binance CEO
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However, Teng clarified that Zhao, as the largest shareholder, still retains “all shareholder rights,” including the ability to nominate board members and replace executives.
<h2 class="wp-block-heading" id="shift-to-education">Shift to education</h2>
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.
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 My next project. <a href="https://twitter.com/GiggleAcademy?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@GiggleAcademy</a> (No logo yet) Free basic (grade 1-12 ish) education, for all. No revenue. Gamified. Adaptive. Read the Concept Paper at <a rel="noopener noreferrer nofollow" href="https://t.co/knqmZF0sQ8" target="_blank">https://t.co/knqmZF0sQ8</a> We are HIRING. Small team, work directly with CZ.— CZ 🔶 BNB (@cz_binance) <a href="https://twitter.com/cz_binance/status/1769877743607448029?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 19, 2024</a>
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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.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/a-billion-dollar-fortune-at-risk-binance-france-removes-changpeng-zhao-as-sole-shareholder/"> A billion-dollar fortune at risk: Binance France removes Changpeng Zhao as sole shareholder </a>

Beyond Binance: Zhao’s pivot to education amid DOJ plea deal

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