Changpeng Zhao Released on Bail
Following guilty pleas at a federal court in Seattle, Changpeng Zhao (CZ), the founder and former CEO of Binance, the world’s largest cryptocurrency exchange, has been released on a $175 million personal recognizance bond. According to a bond document, CZ agreed to return to the U.S. 14 days before his sentencing, scheduled for February 23, 2024. Failure to do so would lead to a warrant for his arrest, a $250,000 fine, and up to ten years in prison.
CZ’s Bail Terms
On Tuesday, November 21, CZ and Binance pleaded guilty to violating anti-money laundering (AML) provisions as part of a settlement deal with the U.S. Department of Justice (DOJ). Binance agreed to a $4.3 billion fine, and CZ agreed to step down as CEO and pay a personal fine of $50 million. CZ agreed to be released on a multi-million dollar bail bond and must provide residence and contact information to his attorney upon release.
He also must refrain from committing any crimes, not harass court-related individuals, and not take controlled substances unless prescribed. He has also agreed to cooperate in DNA sample collection if necessary.
Order Subject to Review
With CZ’s $175 million bond, he posted $15 million in a trust account and will forfeit the cash if he violates his bail conditions. The order is subject to review by a district judge and may be effective from November 27. He faces up to 18 months in prison for violating the Bank Secrecy Act, but prosecutors may ask for a longer jail term.
Hot Take
Although Changpeng Zhao has been released on a multi-million dollar bond, his future remains uncertain as he awaits sentencing in the U.S. You will have to wait and see how this situation unfolds.
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