The sentencing of the former CEO of Binance, Changpeng Zhao, also known as “CZ,” on a money laundering rule charge has been pushed back to late April, as per a notice in Seattle federal court. Zhao, a Canadian national, currently resides in the United Arab Emirates and is out on a $175 million release bond in the United States. He pleaded guilty on Nov. 21 to a charge related to the failure to maintain an effective anti-money laundering program at Binance.
What is the new date for CZ’s sentencing?
The delay in Zhao’s sentencing, which was originally scheduled for Feb. 23, was not explained in the court’s docket entry. However, it has been confirmed that the new date for sentencing is April 30. Zhao’s attorney, William Burck, declined to provide further comment regarding the postponement. The Department of Justice has been approached for clarification on the matter.
According to the rules, Zhao might get up to 18 months in jail. But some say the prosecutors might ask for a tougher punishment. As part of his guilty plea, Zhao said he would quit being the CEO of Binance and pay a $50 million fine. Binance itself agreed to pay a hefty sum of $4.3 billion in fines and restitution after pleading guilty to various charges.
What had happened?
On November 21, 2023, Binance Holdings Limited, the operator of Binance.com, admitted guilt to violations concerning the Bank Secrecy Act, failure to register as a money-transmitting business, and the International Emergency Economic Powers Act. Binance’s CEO, Changpeng Zhao (CZ), also pleaded guilty to failing to maintain an effective anti-money laundering program and stepped down from his position.
Attorney General Merrick B. Garland emphasized, “Using new technology to break the law does not make you a disruptor, it makes you a criminal.” Treasury Secretary Janet L. Yellen highlighted Binance’s negligence, allowing money to flow to illicit actors, while Deputy Attorney General Lisa O. Monaco warned that profit-driven strategies over compliance lead to federal prosecution.
Treasury Secretary Janet Yellen remarked on the severity of the situation, stating, “Binance was allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism.”
Zhao’s attempts to travel to his home in the United Arab Emirates before sentencing were rejected by U.S. District Judge Richard Jones in early December. Judge Jones cited Zhao’s considerable wealth and lack of ties to the US. Considering these as factors contributing to the determination that he may pose a flight risk.
Furthermore, Zhao’s subsequent request to travel to the U.A.E. was also denied by Judge Jones in late December. Zhao had cited the need to be present for the hospitalization and surgery of someone important to him. He had even offered to use his equity in Binance as security for his return.
