Binance’s CZ Allowed to Return to Dubai
According to court documents, Changpeng “CZ” Zhao is required to deposit $15 million in a trust account and secure two guarantors to pledge $250,000 and $100,000. A sentencing is scheduled for Feb. 23, 2024, at 9 a.m. Pacific Time.
Terms for Zhao’s release include refraining from illegal activities, tampering with witnesses or victims, and consuming non-prescribed controlled substances—typical stipulations in a bond release.
The order allows Zhao to leave the U.S., with a requirement to return 14 days before sentencing. However, federal prosecutors express a desire to appeal this provision to a higher-ranking judge, and Zhao agrees to stay in the Seattle area until Nov. 27, allowing discussions to resolve the dispute with the district judge overseeing the case.
Zhao Relinquishes Right to Appeal Sentences Exceeding 18 Months
As part of an agreement following his guilty plea, Changpeng “CZ” Zhao relinquished the right to appeal sentences exceeding 18 months, stated Magistrate Judge Brian Tsuchida in court on Tuesday. According to a separate court document, Zhao and the Department of Justice (DOJ) mutually consented to a $50 million fine, with no mention of imprisonment.
In connection with the settlement between Binance and the U.S. Department of Justice, Zhao resigned from his position. The settlement entails Binance paying $4.3 billion in penalties to various federal agencies and submitting to oversight by multiple monitors for the next five years.
Binance settled the charges not only with the DOJ but also with the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Asset Control (OFAC), and the Commodity Futures Trading Commission—respective authorities overseeing money laundering, sanctions, and federal commodities trading.
The Binance settlement has put the broader crypto market under massive selling pressure. Also, its native cryptocurrency BNB Coin suffers the most, losing over 12% in the last 24 hours.
Hot Take
The fallout from Changpeng Zhao’s guilty plea and the settlement is having a significant impact on Binance, as well as the wider cryptocurrency market. The price of BNB Coin is feeling the brunt as selling pressure mounts amid ongoing legal and regulatory issues for the exchange and its former CEO. It remains to be seen how these developments will impact Binance and the broader crypto industry in the longer term.
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