News - Binance founder "CZ" sentenced in April

By Mike Hesp

Binance founder "CZ" sentenced in April

Changpeng Zhao was originally scheduled to be sentenced in late February. The former CEO of Binance faces a prison sentence. What happens next?

The criminal conviction of the former Binance CEO Changpeng Zhao for money laundering has been postponed until April 30. This was reported by CNBC.

A reason for the two-month postponement was not disclosed. Zhao is currently free in the U.S. on $175 million bail. He actually resides in the United Arab Emirates but was not allowed to leave the country due to flight risk.

Zhao pleaded guilty on Nov. 21 to failing to develop an effective anti-money laundering program at Binance. As part of this plea, he resigned as CEO and agreed to pay a $50 million fine. Now all that remains to be determined is whether or not CZ will go to jail.

According to former SEC employee John Reed Stark Zhao could face 12 to 18 months in prison under U.S. sentencing guidelines. However, his legal team will likely ask for no jail time or an alternative sentence of house arrest and probation.

Earlier, Binance offered to pay $4.3 billion in fines and restitution. This was part of the guilty plea to conspiracy to operate an unlicensed money transfer business and violating the International Emergency Economic Powers Act.

"Binance facilitated free transactions for illegal actors who supported activities ranging from child sexual abuse to illegal drugs and terrorism," said Janet Yellen, US Treasury Secretary, after the company and Zhao pleaded guilty.

In December, Zhao wanted to travel to the United Arab Emirates, at least temporarily, for the hospitalization of a person in his private life. As security for his return, he offered to deposit his Binance capital. The handling judge, Mr. Jones, denied this request.

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