Binance Ex-CEO Must Stay in the US Amid Money Laundering Charges
A federal judge has ruled that former Binance CEO Changpeng Zhao, also known as CZ, must remain in the United States for now. This decision comes after Zhao pleaded guilty to violating US anti-money laundering laws. The judge stated that Zhao will stay in the US until the court determines whether he can return to the United Arab Emirates (UAE), where he holds citizenship. Last week, Zhao resigned as CEO of Binance after admitting to causing the exchange to fail in maintaining an effective anti-money laundering program. As part of his bail agreement, Zhao agreed to a $175 million bond.
CZ’s Conviction and Potential Sentence
Zhao could face a maximum prison sentence of 18 months according to federal guidelines. He has agreed not to appeal any sentence up to that length. The Justice Department will determine the jail time they will seek closer to Zhao’s sentencing. One key concern in this case is securing Zhao’s return to the US, as there is no extradition treaty between the US and the UAE. However, Zhao’s lawyers argue that he is not a flight risk due to the substantial bail package he paid and his voluntary appearance in the US.
Implications for Binance and CZ
Binance, the cryptocurrency exchange founded by CZ, has agreed to pay over $4.3 billion in fines and pleaded guilty to breaking US anti-money laundering and sanctions laws. The outcome of CZ’s trial and conviction is yet to be determined, which could result in additional restrictions or penalties. These proceedings will also determine if CZ will face imprisonment and the subsequent implications and sanctions imposed by US regulators on Binance.
Hot Take: BNB Trading Price Update
The trading price of Binance Coin (BNB) is currently at $224. Over the past 24 hours, it has witnessed a 3% decrease and a more significant correction of 12% over the past 7 days.
Featured image from Entrepreneur, chart from TradingView.com
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