The United States Attorney’s Office has proposed stricter bail conditions for Changpeng “CZ” Zhao, the former CEO of cryptocurrency exchange Binance, as he awaits his sentencing. The request, filed on February 23 in the U.S. District Court for the Western District of Washington, comes from U.S. Attorney Tessa Gorman who is urging Magistrate Judge Brian Tsuchida to enforce new travel restrictions on Zhao.
Prosecutors are aiming to keep CZ confined within the continental United States until his April 30 sentencing hearing, requiring him to notify the authorities three days in advance of any planned travel. This move allows the government time to lodge any potential objections to his movements.
Additionally, the filing demands that Zhao relinquish his Canadian passport along with “all other current and expired passports and travel documents.” It’s noteworthy that Zhao, who also possesses citizenship in the United Arab Emirates, had previously sought permission for travel to the UAE to visit family—a request that was subsequently denied by the court.
This legal stance indicates a potential ongoing struggle between Zhao’s legal team and prosecutors, as indicated by Zhao’s counsel’s objection to the motion as it currently stands. Zhao, who pled guilty in November 2023 to a felony charge for failing to implement an effective anti-money laundering program at Binance, has been free on a $175 million bond since the charges were brought against him.
The backdrop to this legal maneuvering is a hefty $4.3 billion agreement reached between Binance and U.S. authorities, which led to Zhao stepping down as CEO. This was after Judge Richard Jones approved a significant $1.8 billion fine and a forfeiture of $2.5 billion on February 23. Despite these developments, CZ, Binance, and its U.S. arm are still entangled in a civil lawsuit with the U.S. Securities and Exchange Commission, which initiated legal action in June 2023.
Judge Jones, in the February 23 hearing, pointedly criticized the company’s ethical lapses, attributing them to greed. Following CZ’s departure, Binance appointed Richard Teng, previously head of regional markets, as its new CEO. In a recent conversation with Cointelegraph, Teng emphasized the transformative journey of the exchange, describing it as “totally different” from its operations six years ago, marking a new chapter for the embattled crypto giant.Top of Form
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In a precedent-setting move, Binance Holdings Ltd. has agreed to pay a hefty $4.3 billion fine, marking one of the largest corporate penalties in United States history. This decision came to light after a judge sanctioned a plea agreement on Friday, underlining a pivotal moment for the cryptocurrency exchange giant.
A representative from Binance conveyed the company’s acceptance of its previous missteps and highlighted the advancements made in compliance as stipulated by the plea agreement’s conditions. The approval by Judge Richard Jones in a Seattle courtroom brings a close to this chapter for Binance.
The case centered on accusations against Binance, the leading cryptocurrency exchange globally, and its former CEO, Changpeng Zhao, for failing to implement essential anti-money laundering measures, including know-your-customer (KYC) protocols. This lapse reportedly allowed illicit actors to utilize Binance for laundering money through the platform.
To resolve the allegations, Binance consented to the record-setting penalty, announced a change in leadership with Richard Teng taking over as CEO, and agreed to maintain an external compliance monitor for three years.
Binance asserts it has significantly improved its compliance measures, particularly in KYC and anti-money laundering protocols. The company’s spokesperson expressed optimism about continuing to elevate the exchange’s standards for compliance, security, and transparency.
The plea agreement received endorsement from both Binance’s legal team and federal prosecutors, who jointly recommended its acceptance to the court last week.
With Richard Teng, formerly Binance’s Global Head of Regional Markets, stepping in as the new CEO, Binance aims to bolster its reputation as a trusted and secure platform for digital asset exchange.
