Binance Founder Changpeng Zhao Is Heading To The UAE Ahead Of The Sentencing Decision. Binance founder Changpeng Zhao or better known as CZ is considered not to pose a flight risk and should be allowed to return to the United Arab Emirates (UAE) for now.
This was conveyed in a filing on Thursday, November 23, 2023. The document partially rejects the United States (US) Department of Justice’s submission on the grounds that Changpeng Zhao should not be allowed to leave the US ahead of his sentencing in February after pleading guilty to one case of violating the Bank Secrecy Act . This was quoted from Coindesk, Monday (28/11/2023).
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Lawyer Changpeng Zhao said his client had shown he would not risk fleeing. Judge Brian Tsuchida, who is overseeing the case, agreed that Zhao’s presence was initially reassuring.
“Based on all the relevant facts, including Zhao’s voluntary surrender, his intention to settle the case and the sizable bail package he proposed, Judge Tsuchida determined Zhao does not pose a risk of flight, even while living in the United Arab Emirates, ” as stated in the document.
Binance pleaded guilty to various charges alongside Changpeng Zhao earlier this week. Binance even agreed to pay a fine of USD 4.3 billion, appoint a supervisor to oversee its compliance program and review its past transactions and accept Zhao’s resignation as CEO.
Additionally, Binance’s former head of regional markets Richard Teng has taken over as CEO. Zhao was released on $175 million in personal recognizance bail on Tuesday.
Binance Founder Changpeng Zhao Is Heading To The UAE Ahead Of The Sentencing Decision. However, Zhao’s lawyers and the Justice Department are still arguing over whether he can return to the United Arab Emirates, the country where he is a citizen and where his family lives, or whether he should stay in the United States. If Zhao returns to the UAE, he will have to return to the US two weeks before his sentence is handed down.
The DOJ argued that Zhao was able to pay the USD 15 million he kept in a trust account and the USD 5 million put up by his guarantor. Zhao’s lawyers say this argument ignores the financial commitments he and Binance have made. The DOJ’s other arguments also ignore everything Zhao has done, such as flying to the US in the first place.
“Despite the weight of this information and Judge Tsuchida’s considerations, the government did not provide appropriate – or additional – reasons for insisting that Zhao remain in the United States away from his family during the months between his plea and sentencing,” the document said.
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Zhao’s sentencing is currently scheduled for February 23, 2024. He faces a potential prison sentence of 18 months and agreed to pay a USD 50 million fine in his plea agreement.
As previously reported, Changpeng Zhao pleaded guilty to money laundering. Binance, as a company, will also admit guilt and pay a fine of USD 4.3 billion or the equivalent of IDR 66.7 trillion (assuming an exchange rate of IDR 15,515 per US dollar).
Reporting from Yahoo Finance, Wednesday (22/11/2023), this news emerged after the conclusion of a criminal investigation surrounding cryptocurrency exchanges. The investigation centers on alleged regulatory violations and illicit activities within Binance. Now, the conclusion of this investigation appears to have prompted a leadership transition.
The official results of the investigation occurred today, Bloomberg reported the US Department of Justice (DOJ) announced the Binances settlement later in the afternoon. This comes right after the DOJ announced massive cryptocurrency enforcement action would be taken later today.
Zhao also agreed to pay a fine of USD 50 million or the equivalent of IDR 775.7 billion, and was banned from being involved in Binance business for a period of three years after a supervisor was appointed to ensure Binance complies with all laws and exits the US as a sustainable company.
The announcement on Tuesday, November 21, 2023 represents the most high-profile crypto crackdown since former FTX founder Sam Bankman-Fried was arrested and charged in 2022 for stealing from his own crypto exchange. Earlier this month a jury convicted him of defrauding FTX customers, investors and lenders.
Binance Founder Changpeng Zhao Is Heading To The UAE Ahead Of The Sentencing Decision. Some crypto advocates hope Binance’s settlement will allow the industry to move past some of its recent legal troubles and regain the trust of more investors after a dramatic downturn in 2022 that wiped out several companies and attracted the attention of regulators.
Changpeng Zhao has become a major figure in the cryptocurrency world, directing Binance’s rapid rise to become the world’s largest Bitcoin and crypto exchange platform by trading volume. His departure from the leadership of Binance could mark a significant change in the industry.
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Previously it was reported that two US lawmakers, Cynthia Lummis and French Hill, had asked the US Department of Justice (DOJ) to consider criminal charges against Binance and Tether, alleging that the two crypto platforms were used to fund Hamas.
Lummis highlighted the need for federal investigators to take action against criminals in the crypto asset space after reports emerged showing Hamas using crypto assets to fund their war in Israel.
“We urge the Department of Justice to carefully evaluate the extent to which Binance and Tether provide material support and resources to support terrorism through violations of applicable sanctions laws and the Bank Secrecy Act,” Lummis said, quoted from Bitcoin.com, Thursday ( 2/11/2023).
Lummis added that when it comes to illicit finance, crypto is not the enemy of criminals.
The letter cited an article published by the Wall Street Journal on October 10 that stated Hamas, Palestinian Islamic Jihad, and Hezbollah had received crypto funding since August 2021.
While acknowledging the funding levels reported in the article are likely inaccurate, lawmakers believe the Justice Department should still hold criminals accountable if they are found to be facilitating illicit activity.
Binance Founder Changpeng Zhao Is Heading To The UAE Ahead Of The Sentencing Decision. This week, blockchain analysis firm Elliptic clarified there is no evidence to support claims Hamas has received large amounts of crypto donations. The company added that the data it provided had been misinterpreted.
The letter goes on to describe Binance as an unregulated crypto platform based in the Seychelles and Cayman Islands that has historically been associated with illicit activity, noting the company is purportedly the subject of a current Department of Justice investigation.
