Changpeng Zhao, the founder and former CEO of Binance, has received a lifetime ban from managing the cryptocurrency exchange. Initially, there were reports that he would face a three-year suspension. But later, Axios confirmed that the ban is permanent, meaning Zhao can't return to any leadership role at Binance.

Zhao's legal troubles started when U.S. authorities charged him with multiple violations related to Binance's operations. The charges included offering unregistered securities, market manipulation, and failing to meet anti-money laundering (AML) standards.

Even though Binance is one of the largest cryptocurrency exchanges in the world, it has faced intense regulatory scrutiny. This scrutiny has led to serious legal challenges for its founder. In November, Zhao stepped down as CEO as part of a deal with the U.S. Department of Justice, which required him to be permanently removed from the management of the company.

In court, Zhao said, “I’m sorry. I believe the first step in taking responsibility is to fully recognize the mistakes. Here I failed to implement an adequate anti-money laundering program. I realize now the seriousness of that mistake.”

Richard Teng, who took over as CEO of Binance, confirmed that Zhao received a lifetime ban from managing the platform. This ban was a key part of the agreement between Binance and U.S. authorities. Teng also pointed out that even though Zhao is no longer CEO, he remains Binance’s largest majority shareholder. This means he still has some influence over the company’s direction, like proposing changes to management or appointing new board members.

After Zhao’s departure, Binance now has a seven-member board of directors. This is a change from when Zhao was the sole director. To ensure compliance with the agreement, two external agents appointed by the DOJ will monitor Zhao’s adherence to the ban on participating in the management of the exchange.

Zhao has stated that he does not plan to hold executive positions in any companies moving forward. Instead, he wants to focus on investments in emerging areas like blockchain, artificial intelligence (AI), and biotechnology. He is eager to explore opportunities in these fields after leaving Binance’s leadership.

In July, Zhao began serving his prison sentence at the Federal Correctional Institution in Lompoc, California. Initially, federal prosecutors sought a three-year sentence, but Zhao received a shorter term. His defense requested five months of probation, while sentencing guidelines recommended 12 to 18 months in prison. Along with his prison term, Zhao agreed to pay a $50 million fine, which is relatively small compared to his estimated net worth of around $33 billion.

Zhao is set to be released on September 29. Recently, authorities transferred him from the Federal Correctional Institution in Lompoc to a rehabilitation center in Los Angeles. This is a standard procedure aimed at helping inmates transition back into society.