Federal judge accepts Binance CZ’s guilty plea amid legal saga
Changpeng Zhao, popularly known as ‘CZ' and the former CEO of Binance, has pleaded guilty to anti-money laundering charges. The plea was the culmination of a years-long investigation by federal regulators and led to one of the largest corporate settlements in legal history.
U.S. District Judge Richard Jones, who presides in Seattle, Washington, accepted Zhao's plea.
The former Binance CEO ‘CZ' has officially accepted a guilty plea
Judge Jones said:
“This Court, having considered the report and recommendation of the United States Magistrate Judge, to whom there is no current objection, . . . accepts the defendant's plea of guilty.”
The approval concludes an extensive investigation by federal regulators into Binance's operations.
As part of the settlement, Binance agreed to pay one of the largest fines in corporate history, totaling $4.3 billion. Zhao himself agreed to a $50 million fine.
Reflecting on the gravity of the situation, Zhao,
“10 years ago today I quit my job, sold my house and invested in #bitcoin. No, I'm not telling you to do the same. How can so many people take such risks? I knew I could easily get a job… Everyone's risk profile is different. Risk Management Learn.
Following the guilty plea, Zhao resigned as CEO of Binance and chairman of the board of directors of Binance.US. This decision effectively reduces the direct impact on the operations of Binance in the United States, reducing the demand to purely economic.
Read more: 7 best Binance alternatives in 2023
Zhao is due to be sentenced in 2024.
Zhao's sentencing is scheduled for February 23, 2024, where he could face up to 18 months in prison. But now he is out on a $175 million bond. The decision to travel to the United Arab Emirates, where he lives, is still pending in court. Federal prosecutors also expressed concern.
“He has three young children and a partner in the UAE; once he enters the UAE and faces the possibility of up to 18 months in prison if he returns to the US, he simply chooses to stay with his family in the UAE.
As part of the plea, Binance must implement regulatory oversight that allows regulators to report to the Justice Department and the Treasury Department. Richard Teng steps in as the new CEO. Many are confident that he can lead Binance through this new level of regulation.
Overall, this case underscores the enhanced regulatory oversight regulators have over the cryptocurrency industry. It also serves as a serious warning about the consequences of not complying with the prescribed financial rules.
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