The echoes of the agreement made at the end of November between the Binance exchange and U.S. institutions are still continuing. The agreement, which was the cause of the recent rise in cryptocurrency markets, cut off a big FUD and Binance opened a clean page. However, things may not be that easy for Binance founder CZ. So, what does the latest judge’s decision mean?
Binance Founder Case
The largest exchange by market value, Binance was started by CZ years ago. Everything from its origin to its operations has been criticized by mainstream media. Then it grappled with a long-standing Department of Justice investigation. However, despite comprehensive reviews and intelligence investigations, authorities could not identify high-risk crimes such as unauthorized use of customer assets.
Instead, we saw an indictment focused on crimes arising from KYC neglects committed against the U.S. Authorities chose the path of reconciliation to avoid triggering a major collapse in cryptocurrency markets and attracting the wrath of investors before the 2024 elections. In return for a $4.36 billion fine, Binance, CZ, and the former senior compliance officer would be let go free on the condition of being audited until the 3-year review period is completed.
However, CZ is still in the U.S. and cannot go to his country until a decision comes out in the criminal case hearing to be held in February.
Judge Gave the Decision
The judge decided that Binance founder Changpeng Zhao could not leave the U.S. before being sentenced. This was not good news for CZ, who dreamed of being at his main residence in the United Arab Emirates until the hearing to be held on February 23.
The judge thinks that Changpeng Zhao, because of his “massive wealth” and lack of ties with the U.S., should not leave the U.S. before serving his sentence. U.S. District Judge Richard Jones said the following;
“This is an unusual case. The defendant has massive wealth and property abroad and has no ties with the United States. His family resides in the UAE and appears to have a privileged status in the UAE. Under these circumstances, the Court has found that it has not provided clear and convincing evidence that there is no chance of escape if the defendant returns to the UAE.”
The judge added that Zhao is “not facing an insignificant penalty” as the government could request to imprison him for up to 18 months. As a result of the settlement, this penalty could be dropped if no crime is committed again within 3 years.
