Key Takeaways:
- Seattle Court Extends Binance Founder Changpeng Zhao’s Sentencing Timeline by Two Months
- Binance’s CZ can not travel outside the US by April-end
The Seattle federal court has decided to extend the high-profile case involving Changpeng Zhao, CEO of the cryptocurrency exchange Binance. Originally scheduled for sentencing on February 23, Zhao’s criminal sentence has now been postponed to April 2024.
Zhao pleaded guilty to charges of money laundering and other allegations brought forth by the US Securities and Exchange Commission (SEC). Despite his admission, the reason behind the two-month delay in his sentencing remains unclear.
Treasury Secretary Janet Yellen highlighted, “Binance was allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism,” as the company and Zhao pleaded guilty.
Originally slated for sentencing on Feb. 23, Zhao’s request to travel to his home in the United Arab Emirates before sentencing was denied by the judge in early December.
According to federal sentencing guidelines, Zhao could face a maximum sentence of 18 months in prison. However, prosecutors have hinted at the possibility of seeking a harsher punishment, with the statutory maximum being ten years.
Zhao, who is currently free on a $175 million bond in the United States, faced a setback in December when the judge denied his request to travel to his home in the United Arab Emirates before sentencing. The judge cited concerns over Zhao’s significant wealth and lack of ties to the United States, deeming him a potential flight risk.
Meanwhile, amidst the ongoing legal proceedings, Binance has agreed to settle for $4.3 billion in fines and restitution, following a guilty plea for conspiracy charges related to operating an unlicensed money-transmitting business and breaching the International Emergency Economic Powers Act.
In light of these developments, Treasury Secretary Janet Yellen condemned Binance for enabling illicit activities ranging from child sexual abuse to illegal narcotics and terrorism. As the case continues to unfold, the fate of Changpeng Zhao and the implications for Binance remain uncertain.
In December, Binance’s legal team submitted multiple documents in federal court seeking the dismissal of the lawsuit brought by the U.S. Securities and Exchange Commission.
Despite Zhao having already paid $50 million in fines, CNBC reported that he could potentially face up to 18 months or a year and a half in federal prison.
