Ex-Binance CEO Awaits Sentencing; Binance Secures VASP License Amid Distancing Efforts
Summary:
Ex-Binance CEO, Changpeng Zhao, often known as CZ, is in a stable situation and set for sentencing in the United States on a felony charge on April 30, according to co-founder He Yi. The charges resulted from a settlement in November that also required Binance to forfeit $4.3 billion, which led to CZ's resignation. Currently, Zhao is free in the United States with a $175-million bond and travel restrictions. Meanwhile, Binance formed a board of directors recently and claimed a Virtual Asset Service Provider (VASP) license in Dubai, distancing itself from CZ.
Ex-CEO of Binance, Changpeng Zhao, popularly referred to as CZ, finds himself in a relatively stable condition, as conveyed by co-founder He Yi. CZ awaits sentencing on a felony charge in the US slated for April 30. Yi reassured stakeholders over regulatory concerns during a Chinese Meetup event by Binance along the sidelines of Dubai's Token2049 conference, as stated by the organization's press release, despite not directly quoting her. Her sentiments relayed that CZ's standing in the US remains peaceful and previous regulatory encounters had been anticipated internally, going on to express optimism about the current situation in light of the circumstances.
CZ's sentencing in the Western Washington District Court could see him imprisoned for a decade, although the prescribed guideline sentences suggest 12 to 18 months. His single charge emerged from a settlement agreed upon in November which compelled the firm to relinquish $4.3 billion, an agreement leading to CZ stepping down as Binance CEO.
Despite being free in the US on a $175-million bond and facing travel constraints, CZ twice succeeded in obtaining permission to visit Dubai, his dwelling place, due to his child's medical condition. Consequently, the intentions of the U.S Attorney's Office to seize his passports emerged. Possessing a Canadian passport, CZ is also a national of the United Arab Emirates. Yi, mother to two of CZ's children, denied any existing romantic relationship with CZ who she co-owns an undisclosed percentage of the exchange firm.
Ever since CZ's exit as the CEO, Binance has strived to dissociate itself from him. His successor, Richard Teng, a former head of regional markets outside the US for Binance, asserts that the operation of the exchange under his authoritative rule is “completely distinct”. The exchange subsequently inaugurated a board of directors this month.
On April 18, Binance reportedly acquired a Virtual Asset Service Provider (VASP) license in Dubai. An alleged condition for securing the license required that CZ relinquish his voting rights in the regional body, Binance FZE, though Binance refrained from commenting on this speculation.
Source: CryptoCoins68
Cracking down on crypto-related misdemeanors is progressively becoming a prime focus for US enforcement agencies.
Published At
4/18/2024 10:16:10 PM
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