Binance Founder CZ Ordered to Stay in the US Until Sentencing
Binance founder Changpeng “CZ” Zhao has been ordered by a US federal judge to remain in the United States until his sentencing in February 2024. The judge cited concerns about flight risk if Zhao were allowed to return to the United Arab Emirates. Judge Richard Jones stated that Zhao’s significant wealth and property abroad, along with his family residing in the UAE, indicated a likelihood of fleeing. Zhao recently pleaded guilty to one count of Bank Secrecy Act violations and reached a $4.3 billion settlement with US agencies. He now faces up to 18 months in prison.
Extradition of Terraform Labs Co-Founder Do Kwon Possible
Do Kwon, co-founder and former CEO of Terraform Labs, may be extradited to the United States after being arrested in Montenegro for using falsified travel documents. The Montenegrin Minister of Justice plans to grant the US officials’ request for Kwon’s extradition. Kwon is also facing charges in the US and South Korea related to his alleged involvement in the collapse of Terraform Labs.
EU Officials Reach Agreement on AI Regulation
The European Parliament and Council negotiators have reached a provisional agreement on regulations for artificial intelligence (AI) use within the European Union. The agreement includes requirements for AI models with significant impact and systemic risks to address those risks, perform adversarial testing, report incidents, ensure cybersecurity, and disclose energy efficiency. It prohibits cognitive behavioral manipulation, facial image scraping, social scoring, and biometric systems inferring personal details. Consumers will have the right to file complaints and receive explanations.
Almost a Thousand Crypto Exchanges Blocked in Kazakhstan
Kazakhstan’s Financial Monitoring Agency has reported blocking access to 980 illegal cryptocurrency platforms in 2023. The agency also initiated investigations into “illegal exchange operations” and money laundering. Major international platforms were among the unlicensed exchanges blocked. In November, the Ministry of Culture and Information ordered a block on the Coinbase website, preventing Kazakh citizens from accessing it. The request came from the Ministry of Digital Development, which accused Coinbase of violating the Digital Assets Law.
Blockchain Leadership Bill Advances in US House Committee
A bill supporting blockchain technology has been unanimously passed by a United States Congress committee. The bill would task the US commerce secretary with promoting blockchain deployment and increasing the country’s use of the technology. It directs the commerce secretary to take actions necessary to enhance the competitiveness of the US in blockchain technology. The bill also establishes a Blockchain Deployment Program and government advisory committees to support blockchain adoption.
Hot Take: Binance Founder CZ Faces Legal Challenges
The legal challenges faced by Binance founder Changpeng “CZ” Zhao highlight the increasing scrutiny on cryptocurrency industry leaders. With his recent guilty plea and settlement, Zhao is now awaiting sentencing, potentially facing prison time. This case serves as a reminder that regulatory authorities are actively pursuing enforcement actions against individuals involved in financial crimes within the crypto space. Additionally, extradition proceedings for Do Kwon indicate the global reach of such legal actions. As governments worldwide work to regulate cryptocurrencies and related activities, it is crucial for industry participants to comply with laws and regulations to avoid severe consequences.
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