Changpeng Zhao has been permanently removed from managing Binance.

Binance has permanently removed Changpeng Zhao from management, confirmed by the company’s new CEO, Richard Teng. Zhao will remain the majority shareholder but will no longer serve on the board of directors.

Zhao is currently serving a four-month prison sentence in the U.S. and is expected to be released on September 29. The charges against him include money laundering and sanctions violations. Binance has agreed to pay a $4.3 billion fine and replace Zhao as part of a settlement with U.S. authorities.

Zhao pleaded guilty, paid an additional fine, and stated that he will focus on investments in blockchain, AI, and biotechnology. New Binance CEO Richard Teng has promised active cooperation with regulators.