In a recent development, Binance founder and former CEO Changpeng Zhao (CZ) has been prohibited from leaving the United States until his scheduled sentencing in February next year. The decision came from a federal judge and is part of the aftermath of Zhao stepping down as the CEO of Binance, having pleaded guilty to violating the Bank Secrecy Act. The guilty plea entails significant consequences for both Zhao and Binance, with the crypto platform required to pay hefty fines totaling $4.3 billion while being mandated to make a complete exit from the U.S. market.
Federal Judge Richard Jones, presiding over the case, issued the ruling on Monday, asserting that Changpeng Zhao is not allowed to depart the country until his sentencing. Although Zhao is presently not facing immediate imprisonment, he remains on bail, having posted a substantial amount of $175 million, which will continue until his scheduled sentencing on February 23, 2024.
This legal development comes on the heels of Zhao's guilty plea, which he expressed during a hearing on November 21st. In his statement, Zhao mentioned, "I want to take responsibility and close this chapter in my life." The decision to plead guilty followed weeks after a rival in the crypto space, FTX founder Sam Bankman-Fried, faced a guilty verdict on seven fraud charges in a Manhattan federal court.
In a notable twist, attorneys representing Changpeng Zhao contested a motion from the U.S. Department of Justice that aimed to restrict Zhao, who is a Dubai resident, from leaving the United States. In their argument, the defense pointed out that the United Arab Emirates, where Zhao resides, does not have an extradition treaty with the U.S. The attorneys contended that Zhao staying in the U.S. would complicate matters for his family, especially given that he recently welcomed a third child, making it more challenging for him to fulfill responsibilities.
The defense's argument emphasized the benefits of Zhao remaining in the UAE, enabling him to take care of his family and prepare for a future return to the U.S. for sentencing. They stressed that fleeing would expose Zhao to additional charges and severe consequences. On the contrary, returning after the sentencing could result in a relatively brief or potentially no prison term, allowing him to reunite with his family.
In a significant announcement on the Binance platform, Zhao revealed on November 21st that Richard Teng, who previously served as the Head of Regional Markets for Binance, has taken over the role of CEO. Zhao expressed confidence in Teng, stating, "He will ensure Binance delivers on our next phase of security, transparency, compliance, and growth."
Teng, in his inaugural blog post as the CEO, outlined his vision for Binance's future. He emphasized the importance of working openly with regulators and engaging in meaningful conversations with global policymakers. Teng's goals include instilling confidence in crypto investors, ensuring the industry's future, and educating the next billion users to contribute to the long-term sustainability of the crypto space.
