Ex-Binance CEO's Upcoming Project Amid Legal Stakes: A Felony Charge, A Lawsuit, and A Mystery Unfolding
Summary:
Former Binance CEO, Changpeng "CZ" Zhao, is set to appear in court on April 30 for a felony charge, following his resignation and a $4.3 billion plea deal with U.S. authorities. Amid legal struggles, Zhao hinted at a new, education-focused crypto or blockchain project without involving new tokens. His sentencing was deferred from a February schedule and he possibly faces a 12-to-18-month prison term. Meanwhile, Binance and Zhao still deal with a June 2023 lawsuit from the U.S. Securities and Exchange Commission.
Changpeng "CZ" Zhao, the former Binance CEO, gave hints about a forthcoming project that doesn't involve the creation of new tokens, in the midst of his emergence in a federal court on April 30, following his guilty plea to a felony charge. On March 18, Zhao posted about the development of a project related to cryptocurrency or blockchain technology, with its emphasis on education.
The specifics of the project, which Zhao promises not to involve "new tokens," will be unveiled soon, he says. To note, Zhao, the ex-CEO of Binance — one of the world's most prominent cryptocurrency exchanges — resigned in November 2023 as a part of a plea arrangement with U.S. law enforcement agencies.
The settlement, which required Binance to remit $4.3 billion and Zhao to admit guilt to a single charge due to the company's ineffective Anti-Money Laundering measures, was reached with the U.S. Department of Justice, Treasury Department, and Commodity Futures Trading Commission. Zhao has remained in the U.S., secured by a $175 million bail bond.
He has on numerous occasions requested court approval for travel to meet family in the United Arab Emirates and his sentencing, originally slated for February, has been postponed till April 30. Some analysts posit that Zhao could face a prison term between 12 and 18 months.
Since the plea deal, Zhao's social media activity has been largely dormant, except for sporadic neutral posts. His mention of an upcoming project on March 18 led to conjecture among followers, although the details were unclear at the point of reporting.
Binance and its U.S. variant, as well as Zhao, are currently facing a U.S. Securities and Exchange Commission lawsuit, launched in June 2023. Binance.US, in a court document from March 5, claimed that the regulatory body's enforcement action served a "near-mortal blow.
Published At
3/18/2024 9:35:32 PM
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