Court Delays Binance Founder CZ’s Criminal Sentencing, Here’s Why

As per the latest notice on Monday, February 12, the Seattle federal court has delayed the criminal sentencing for Changpeng Zhao to late April 2024. Zhao has been facing money laundering and other charges amid a crackdown on crypto exchange Binance, by the U.S. Securities and Exchange Commission (SEC). Originally, Zhao’s sentencing was scheduled to happen by the end of February this month.

The Court Has No Explanation for Delay In CZ’s Sentencing

Binance founder Changpeng Zhao is currently free on a $175 million release bond in the United States and awaits further legal proceedings.

While the reason behind the postponement remains undisclosed in the docket entry, Zhao’s lawyer, William Burck, chose not to comment on the matter when approached for clarification. Federal sentencing guidelines propose a maximum prison term of 18 months for Zhao. However, reports suggest that prosecutors might seek a harsher sentence in his case.

Zhao pleaded guilty on Nov. 21 to a charge related to the failure to maintain an effective anti-money laundering program at Binance, the world’s largest cryptocurrency exchange. As part of his plea deal, he agreed to step down from his role as Binance’s CEO and pay a hefty $50 million fine.

Binance Pays a Hefty Fine

Amid all the developments, Binance consented to settle for $4.3 billion in fines and restitution as it entered a guilty plea for conspiracy charges related to operating an unlicensed money-transmitting business, engaging in such activities, and breaching the International Emergency Economic Powers Act. As Zhao and binance pleaded guilty, Treasury Secretary Janet Yellen said:

“Binance was allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism”.

In early December, the judge presiding over Zhao’s case dismissed his plea to travel back to his residence in the United Arab Emirates before his sentencing.

U.S. District Judge Richard Jones justified his decision by pointing out Zhao’s significant wealth and absence of connections to the United States, deeming him a potential flight risk.

Subsequently, in late December, Jones turned down another request from Zhao to travel to the U.A.E. This time, Zhao stated his intention to return home due to the “hospitalization and surgery” of a person close to him. However, Zhao proposed to use his equity in Binance as collateral to ensure his return

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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