[NEWS] US District Court Accepts Former Binance CEO CZ's Guilty Plea; Sentencing to Set for February Next Year

On the 6th, US District Judge Richard Jones of the Western District of Washington accepted the guilty plea of ​​Changpeng Zhao (CZ), founder and former CEO of Binance, to money laundering.

In a court filing, Judge Jones said he accepted CZ's guilty plea to one count of violating the Bank Secrecy Act.

CZ is currently out on $175 million bail and had asked for permission to return to his family in the United Arab Emirates (UAE), but has been instructed to remain in the US until his sentencing on February 23 next year. CZ could face up to 18 months in prison.

US authorities had expressed concern about the possibility of extradition being difficult. There is no extradition treaty between the US and the UAE. CZ claims, "I have taken responsibility for my actions by coming to the US from the UAE. I am not a flight risk."

CZ pleaded guilty last month to anti-money laundering and sanctions violations following a years-long investigation by federal regulators. Binance agreed to pay $4.3 billion in the largest settlement in history. CZ agreed to pay a $150 million fine and stepped down as CEO of Binance.

CZ also stepped down as chairman of the board of directors of Binance US last week, announcing his complete removal from the company's management. Binance US will continue to conduct its economic activities in full compliance with U.S. law.

Binance's new CEO, Richard Teng, said the compliance gap is completely a thing of the past and that cryptocurrency exchanges are now very different. As part of the settlement, CZ said he would no longer have any involvement in Binance's operations.

Reference:Announcement
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