The sentencing of former Binance CEO Changpeng Zhao, known as “CZ,” on a money laundering charge has been delayed until April 30, as per a notice in a Seattle federal court. Zhao, residing in the United Arab Emirates, is out on a $175 million bond in the United States. Having pleaded guilty to a charge of failing to uphold an effective anti-money laundering program at Binance, he agreed to step down as CEO and pay a $50 million fine.
The sentencing of Binance Founder CZ delayed
The criminal sentencing of Changpeng Zhao, the former CEO of Binance, on a money laundering charge has been postponed until April 30, according to recent updates from a Seattle federal court. Zhao, widely known as “CZ,” is currently residing in the United Arab Emirates and is on bail in the United States, amounting to $175 million.
Plea and Agreement
Zhao pleaded guilty to a failure to maintain an effective anti-money laundering program at Binance, the world’s largest cryptocurrency exchange, which he founded. In conjunction with this plea, he agreed to step down from his role as CEO and pay a hefty fine of $50 million.
Background and Previous Decisions
Originally scheduled for February 23, the sentencing has seen delays without a clear explanation. Prosecutors have considered advocating for a more severe sentence than the maximum of 18 months suggested by federal sentencing guidelines. This decision comes after Binance agreed to pay $4.3 billion in fines and restitution for multiple violations, including conducting an unlicensed money-transmitting business.
Travel Restrictions and Sentencing Concerns
Despite requests, Zhao’s bid to travel to the UAE before sentencing was rejected by U.S. District Judge Richard Jones due to concerns about flight risk. Zhao’s previous attempts to travel were denied, even when citing personal reasons such as a family member’s hospitalization and surgery. Despite offering equity in Binance as security, his plea was declined, underlining the severity of the charges against him.
The postponement of Changpeng Zhao’s sentencing marks a significant development in the ongoing legal proceedings surrounding Binance’s operations. With the new date set for late April, the cryptocurrency community awaits further updates on this high-profile case.
