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Changpeng "CZ" Zhao, Binance's former CEO, reportedly had his sentencing deferred. A revelation by CNBC, referring to a Monday announcement from a Seattle federal courtroom, indicates that the sentencing for Zhao has been shifted to April 30 by U.S. prosecutors.
Investigations led by the United States Department of Justice culminated in November with charges against Zhao for breaching sanctions and laundering money. Following these allegations, Zhao stepped down from his role as CEO of Binance, paving the way for Richard Teng, the previous chief of global regional markets at Binance, to assume leadership.
The directive issued to Binance was to halt all its operations within the United States, facing a potential fine of $4.3 billion. Although Zhao was released on a $175 million bail, District Judge Richard Jones introduced travel restrictions due to concerns from prosecutors regarding Zhao's potential to abscond.
To nullify the SEC's legal challenge, Binance's attorneys filed several documents in federal court in December. Reports from CNBC highlight that Zhao, having already incurred $50 million in fines, is at risk of an 18-month sentence in a federal penitentiary.
Post the admission of guilt by Binance and Zhao, Treasury Secretary Janet Yellen criticized Binance for facilitating transactions for nefarious actors, thereby supporting a spectrum of illegal activities ranging from child sexual abuse to drug trafficking and terrorism.
Significant developments include a federal court's rejection last month of Zhao's plea for a visit to the UAE, despite his offer of a $4.5 billion equity as assurance for his return to the U.S. This equity stake is reportedly tied to Binance's latest capital raising event, as stated in a December letter from Zhao's legal representatives to Judge Jones.
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Brenda has been a news writer since 2019 with a deep background in crypto. Brenda commits to producing excellent, well-optimized content to ensure consumer satisfaction.