Will Binance Ex-CEO Changpeng Zhao Face Prison Time? Decoding The Possibilities
The post Will Binance Ex-CEO Changpeng Zhao Face Prison Time? Decoding The Possibilities appeared first on Coinpedia Fintech News
The crypto market is getting shocker every day, with the SEC’s growing scrutiny on the crypto exchanges market grappling with a series of losses. But many are debating on the fate of CZ. Will he be jailed, will his assets be seized, or whatnot? While many legal experts would like to see him in jail for 5-10 years next to Sam Bankman-Fried. Let’s give you a nosedive to what’s happening with CZ and Binance after the DOJ slammed with a $4B fine.
Binance’s founder, Changpeng Zhao, won’t face jail time but remains under the legal radar. His $175 million bond secures temporary freedom as he awaits sentencing in February 2024. This comes after pleading guilty to violating the Bank Secrecy Act, a culmination of federal accusations concerning lax customer checks and inadequate anti-money laundering measures at Binance. The settlement with the Department of Justice amounts to a staggering $4.3 billion, marking a pivotal moment in the high-stakes world of crypto exchanges.
CZ Can Appeal the Jail Term, If?
In a pivotal courtroom moment, Judge Brian Tsuchida laid down the conditions: Changpeng Zhao’s guilty plea means no appeals for 18 months. This pact with the DOJ involves a hefty $50 million fine, yet oddly, it avoids mentioning jail time. While Zhao remains in Seattle until November 27, DOJ lawyers and his legal team will engage in further discussions under the district judge’s watchful eye.
Attorney General Merrick Garland made waves during a press conference, emphasizing the magnitude of the penalties faced by the corporate giant. Meanwhile, the release terms for Zhao include standard restrictions against breaking the law, interfering with any case-related individuals, and banning non-prescribed controlled substances.
A curious twist emerges: the order seemingly allows Zhao to leave the U.S., but federal prosecutors contest this clause, seeking an appeal with a higher judge. It’s a legal tango over his ability to travel before sentencing. This legal saga continues with twists and turns, all centered around the fate of the embattled Binance founder.
A New Chapter in Binance…Investors are not Impressed
After departing Binance, Changpeng Zhao appointed Richard Teng as CEO. In his X post, Teng said he takes on responsibility for 150 million users and thousands of staff and will work with CZ and the leadership team to exceed stakeholder expectations and achieve freedom of money.
Teng will focus on reassuring users of the company’s financial strength, security, and safety, collaborating with regulators to uphold global standards, and working with partners to drive growth and adoption of Web3.
Meanwhile, the aftermath of Zhao’s exit was felt immediately in the market as Binance Coin (BNB) plummeted by over 8% within an hour, trading at $227.2. The coin’s volatility reflects the tumultuous impact of Zhao’s legal issues on Binance’s standing and the cryptocurrency market as a whole.
