Key takeaways:
- As part of a deal with the US Department of Justice involving the cryptocurrency exchange Binance, Changpeng “CZ” Zhao entered a guilty plea to one felony charge.
- The judge stated that CZ would not be allowed to leave the country until a court decision was made regarding a motion for review by the US authorities.
As part of a deal with the US Department of Justice involving the cryptocurrency exchange Binance, Changpeng “CZ” Zhao entered a guilty plea to one felony charge. While he awaits sentencing, Zhao might not be allowed to leave the country.
Judge Richard Jones suspended a magistrate judge’s decision to allow CZ to return to the United Arab Emirates, where he has family, according to a motion made on November 27 in the US District Court for the Western District of Washington at Seattle.
The judge stated that CZ would not be allowed to leave the country until a court decision was made regarding a motion for review by the US authorities.
In violation of the US Bank Secrecy Act, Zhao entered a guilty plea on November 21 to one felony count for failing to operate an efficient anti-money laundering program while serving as CEO of Binance.
He was granted a $175 million bond, which allows him to travel across the United States without restriction until his sentence, which is scheduled for February 2024. CZ may receive a sentence of up to 18 months in prison under federal sentencing guidelines.
As part of a settlement with the US Department of Justice, CZ resigned as CEO of Binance on November 21 and agreed to pay regulators $150 million after entering a guilty plea to one criminal charge. The accord paid the cryptocurrency exchange almost $4.3 billion in penalties but mostly spared it from further accusations.
The Department of Justice (DOJ) has taken a more aggressive position in the current legal drama, considering a significant 10-year prison sentence. CZ’s opposition to the government’s move to have him detained in the United States served as the impetus for the prosecution’s most recent filing.
