Abdulkarim Abdulwahab
The initial February sentencing of Binance founder Changpeng Zhao (CZ) for U.S. money laundering rule violation has been rescheduled to April 30.
A recent notice from the Seattle federal court captured this development as U.S. media CNBC disclosed. The notice failed to provide details on the reason for the two-month delay from the original sentencing date of February 23.
According to CNBC, federal sentencing guidelines indicate a maximum prison sentence of one year and six months. However, prosecutors have allegedly contemplated seeking a more severe penalty for CZ.
CZ’s Offence
Recall that CZ pleaded guilty last November to failing to uphold an effective anti-money laundering (AML) program at Binance, the most prominent crypto trading platform.
Zhao committed to resigning as Binance’s chief executive officer as part of his plea deal alongside paying a $50 million fine. Simultaneously, Binance consented to pay $4.3 billion in fines and restitution.
Notably, the plea included charges related to conspiracy to operate an unregistered money-transmitting business, engaging in such activities, and breaching the International Emergency Economic Powers Act.
U.S. Treasury Secretary Janet Yellen remarked when Binance and its former CEO pleaded guilty:
– Advertisement –
“Binance was allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism.”
Binance Founder’s Travel Ban Extends
In early December 2023, U.S. District Judge Richard Jones denied CZ’s request to travel to his residence in the UAE before the initial February sentencing. The judge pointed to Zhao’s absence of strong ties to the U.S., suggesting he posed a flight risk.
Meanwhile, Zhao submitted a new request later the same month. He stated that he needed to return home for the “hospitalization and surgery” of someone important to him. Moreover, he proposed using his equity in Binance as security for his return.
Yet, Judge Jones again dismissed Zhao’s request. Ultimately, Changpeng Zhao remains trapped in the United States for two more months before his sentencing date.
Notably, the Binance former CEO remains free on a $175 million release bond in the U.S authorities.
Follow Us on Twitter and Facebook.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
