CZ's Plea Accepted, Judge Undecided on Binance Founder's Fate

• Binance Founder Admits Guilt in Violation of Bank Secrecy Act
• Details of the Case
• Sentencing and Conditions
• Binance's Plea Deal

Binance Founder Admits Guilt in Violation of Bank Secrecy Act

United States District Court Judge Richard Jones officially accepted the guilty plea by Binance founder, Changpeng CZ Zhao, regarding a violation of the Bank Secrecy Act. Yet to be determined is whether Zhao will be permitted to return to the United Arab Emirates before his sentencing in February.

Details of the Case

The plea was accepted on a Wednesday, just over a fortnight post-Zhao and Binance's acknowledgment of guilt relating to multiple infringements associated with insufficient anti-money laundering protocols at the world's most expansive crypto exchange. In connection to these guilty pleas, Zhao relinquished his position as CEO of Binance.

In the judge's words, This Court, having considered the Report and Recommendation of the United States Magistrate Judge, to which there has been no timely objection ... hereby accepts the plea of guilty of the defendant ... the defendant is adjudged guilty of such offense,. All those involved in the case are mandated to appear before the court for sentencing as directed.

Sentencing and Conditions

Zhao's sentencing is slated for Feb. 23, 2024. While he has been granted release on bond until then, the prosecutors insist that he should remain within U.S. boundaries until sentencing. Zhao's legal representatives argue that he is not a flight risk and should be allowed to return to the UAE where his family resides until February.

As per the current bail release conditions, Zhao would be allowed to leave but must return two weeks before sentencing. However, Judge Jones put this condition on hold last week until a final decision can be made, meaning Zhao must currently remain in the United States.

Binance's Plea Deal

Binance faced guilt on three charges, inclusive of a sanctions-related offence. As a result, the company must permit monitors to report back to both the Justice and Treasury Departments. This plea deal consequently led to Binance agreeing to pay an extensive fine of $4.3 billion. Richard Teng, former Binance director, has since assumed the role of CEO.

Edited by Jonathan Stoker