Binance co-CEO move revives questions over Changpeng Zhao’s control

Binance made Yi He co-CEO as Donald Trump’s pardon of Changpeng Zhao raises fresh uncertainty over how strictly U.S. authorities can enforce his three-year management ban.

Summary

• Zhao pleaded guilty in 2023, agreed to step down as CEO, and to stay out of Binance’s global management during a three-year U.S. monitorship.​
• Yi He, Zhao’s partner and co-manager of the YZi Labs family office, now shares the top role at an exchange he still largely owns.​
• Legal experts are split on whether the presidential pardon weakens DOJ and Treasury leverage or leaves Zhao’s consent to refrain from executive roles intact.

Binance has appointed Yi He as co-CEO of the cryptocurrency exchange, raising questions about the continued influence of founder Changpeng Zhao, who agreed to step down from management as part of a 2023 plea agreement.

Zhao, commonly known as CZ, pleaded guilty to a federal crime in 2023 and agreed to resign as CEO of Binance. The agreement included refraining from participating in Binance global management during a three-year government monitorship, according to court documents.

Changpeng Zhao may be back at Binance sooner rather than later

Yi He is the mother of Zhao’s children and co-manages the assets of his family office, YZi Labs, with him. The name YZi is a stylized combination of “Yi,” her given name, and “Z,” the first character of Zhao’s surname, according to public information about the family office.

Bloomberg estimates that Zhao owns approximately 90% of Binance in addition to an 86% stake in its U.S. subsidiary. Zhao continues to reference Binance in his social media profile and username.

The enforceability of Zhao’s agreement to refrain from Binance management has become uncertain following a presidential pardon he received. The pardon erased his federal criminal conviction and restored civil rights affected by his felony conviction at the federal level, according to legal experts.

Legal commentators have offered differing views on the pardon’s impact. Some have argued the pardon could undercut the abilities of the Department of Justice and U.S. Treasury to enforce their monitorship program, while others contend that Zhao’s consent to refrain from executive roles may remain valid unless explicitly vacated in a separate White House action.

Binance has been actively negotiating with the DOJ to end the monitorship program early, according to sources familiar with the matter. The DOJ and Binance declined to comment on the status of those negotiations.