The Court Delays CZ’s Sentencing without Explanation
Binance founder Changpeng Zhao, also known as CZ, is currently awaiting further legal proceedings after his criminal sentencing was postponed to late April 2024.
The reason for the delay has not been disclosed, and Zhao’s lawyer declined to comment on the matter. While federal guidelines suggest a maximum prison term of 18 months for Zhao, prosecutors may seek a harsher sentence in his case.
Zhao previously pleaded guilty to a charge related to the failure to maintain an effective anti-money laundering program at Binance. As part of his plea deal, he agreed to step down as CEO and pay a $50 million fine.
Binance Settles with Hefty Fine
In addition to Zhao’s legal troubles, Binance has agreed to settle for $4.3 billion in fines and restitution. The settlement comes after Binance pleaded guilty to conspiracy charges related to operating an unlicensed money-transmitting business and breaching the International Emergency Economic Powers Act.
Treasury Secretary Janet Yellen stated that “Binance was allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism.”
Despite multiple requests, Zhao has been denied permission to travel back to his residence in the United Arab Emirates before his sentencing. The judge cited his significant wealth and lack of connections to the United States as potential flight risks.
In a later request, Zhao offered his equity in Binance as collateral but was still denied permission to travel.
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