The Seattle federal court has made a decision to continue the high-profile case that marked the end of last year. On Monday, February 12, it was announced that the criminal sentence against Changpeng Zhao was postponed to April 2024. Zhao had admitted to charges of money laundering and several other allegations against the cryptocurrency exchange Binance by the US Securities and Exchange Commission (SEC).
Court and CZ’s Punishment
Binance founder Changpeng Zhao is banned from leaving the country but is not in prison. He is currently able to move freely within the United States based on a $175 million bail he has paid and is following the legal process.
The reason why the Seattle court postponed the case is not entirely clear, and it seems that this has not been recorded in the case file either. At the same time, Zhao’s lawyer, William Burck, has chosen not to comment on the matter. Considering federal penalties, Zhao could face a maximum of 18 months in prison.
Nevertheless, prosecutors are thought to be able to demand a longer and more severe sentence in this case in light of the reports that have emerged.
On November 21, Zhao accepted allegations that he had not taken a clear stance against money laundering at Binance, which is considered the world’s largest cryptocurrency exchange by volume.
In an agreement with the authorities, Zhao agreed to resign as CEO of Binance and was prepared to pay a hefty fine of $50 million.
Binance’s Fine and Payment Amount
In addition to these events, Binance has agreed to pay an incredible fine and compensation of $4.3 billion for conducting unlicensed money transfers, engaging in similar activities, and a series of other charges. During this process, while Zhao and Binance admitted to the charges, Treasury Secretary Janet Yellen had commented:
“Binance was allowing illegal actors to transact freely, supporting activities ranging from child sexual exploitation to illegal drugs and terrorism.”
In early December, Zhao requested to return to his residence in the United Arab Emirates, but the judge of the case had denied this request.
US District Judge Richard Jones provided clarity on his decision to deny the request, pointing to Zhao’s vast wealth and the lack of visible ties to the US, suggesting that Zhao could potentially flee. This request was denied again in December for other reasons.
