The sentencing of Changpeng Zhao, originally scheduled for February, has been postponed to April following his guilty plea for money laundering.
Consequences and Agreements of CZ with the DOJ
As part of a settlement agreement with the Department of Justice, CZ resigned from his position at Binance and agreed to pay a $50 million fine. Currently, he is out on $175 million bail but is prohibited from leaving the United States. A request by CZ to visit his family in the United Arab Emirates was denied by a US court since there is no extradition treaty between the US and the UAE.
Financial and Legal Implications
CZ has put his stake in Binance.US, valued at over $4 billion, at risk in an unsuccessful attempt to obtain permission to leave the country. Binance has settled fines totaling $4.3 billion and reached agreements with the DOJ, Treasury, and Commodity Futures Trading Commission, pleading guilty to monetary sanctions violations, conducting unlicensed money transmission activities, and money laundering violations.
According to the DOJ, Binance and CZ have chosen not to comply with US legal and regulatory requirements, believing it would limit their ability to attract and retain US users.
