The cryptocurrency exchange Binance has permanently removed former CEO Changpeng Zhao (CZ) from management. This was reported by Axios, citing the current head of the company, Richard Teng.
The entrepreneur’s plea agreement with the U.S. Department of Justice mentioned a three-year term.
CZ is serving a four-month prison sentence for charges related to money laundering and other illegal activities. The court issued the sentence on April 30. He is expected to be released on September 29.
According to data from the Federal Bureau of Prisons, Zhao has already been transferred from the correctional facility in Lompoc, California, to a reentry residential center in Long Beach, Los Angeles. Such facilities, often referred to as “halfway houses,” help released inmates prepare for reintegration into society.
Teng clarified regarding the ban that CZ remains the largest shareholder of the company with the corresponding rights to influence management appointments.
Axios noted that before the deal with the Department of Justice, Zhao was the sole member of the company’s board of directors. Now, the board comprises seven members.
In August, Teng stated that Binance is not considering an IPO. This step, among other things, would dilute CZ’s stake, but the company does not intend to do so, he added.
The CEO confirmed that Zhao’s partner and co-founder of the exchange, Yi He, remains “an essential part” of the management team.
She and the Vice President for Global Intelligence and Investigations, Tigran Gambaryan, as close associates of CZ, might act as conduits for his policies at Binance, according to Vanderbilt University law professor Yesha Yadav.
Gambaryan has been in a Nigerian prison since February. Authorities detained him and the director of the exchange in West and East Africa, Nadeem Anjarwalla, accusing them along with Binance Holdings Limited of tax evasion and money laundering. The company and top managers deny their guilt.
Partnership with Auditor Grant Thornton Singapore
Binance has hired Grant Thornton Singapore as a global accounting and tax advisory consultant.
Proud to share that #Binance has appointed Grant Thornton Singapore to provide global accounting & tax advisory services as we prepare for future audits of our global business.
We are committed to upholding the highest standards in our global operations.https://t.co/wP1VqS34nd
— Richard Teng (@_RichardTeng) September 4, 2024
According to the statement, this strategic move is aimed at strengthening the company’s financial management.
“Grant Thornton Singapore will further strengthen our accounting practices by providing a range of non-audit and assurance services, including technical accounting advice, financial reporting, audit readiness, and tax advisory,” the statement said.
The collaboration is expected to align Binance’s accounting policies with International Financial Reporting Standards in preparation for future global audits.
For the 2023 fiscal year, accounting audits were conducted in 25 entities of the crypto company. All audits received positive conclusions, Binance emphasized.
According to Senior Vice President for Finance Kaiser Ng, the partnership with Grant Thornton Singapore will make Binance’s business more transparent to global regulators and align it with the structure of traditional enterprises.
In April, the CEO of Binance discussed the company’s search for a jurisdiction to establish a headquarters.