Former Binance CEO Changpeng Zhao, also known as CZ, is currently facing a “positive situation,” as stated by He Yi, the co-founder of the cryptocurrency exchange. CZ is scheduled to be sentenced on April 30th in the United States for one felony charge. The concerns surrounding the regulatory status of Binance were addressed by Yi during the Binance Chinese Meetup held at the Token2049 conference in Dubai. Although she was not directly quoted in the post, Yi mentioned that CZ could potentially face a prison term of up to 10 years when sentenced in the District Court of Western Washington. However, the recommended sentence in the guidelines is 12 to 18 months. The single charge stemmed from a settlement in November, which required the forfeiture of $4.3 billion and led to CZ’s resignation as Binance CEO.
Despite facing potential prison time, CZ is currently free in the United States on a $175-million bond with travel restrictions. He has sought permission twice to travel to Dubai, where he resides, due to a medical situation involving one of his children. In response, the U.S. Attorney’s Office has attempted to seize his passports, as CZ holds both a Canadian passport and United Arab Emirates citizenship. It is worth noting that Yi, who owns an undisclosed stake in the exchange, is the mother of at least two of CZ’s three children, although she denies being his current romantic partner.
Following CZ’s resignation as CEO, Binance has distanced itself from him and appointed Richard Teng, the former head of regional markets outside the United States, as his replacement. Teng has emphasized that Binance is now “totally different” under his leadership and has established a board of directors earlier this month.
Reports suggest that Binance has obtained a Virtual Asset Service Provider (VASP) license in Dubai on April 18th. As part of the licensing conditions, CZ was reportedly required to relinquish his voting rights in the local entity, Binance FZE. However, Binance has chosen not to comment on this claim.
US enforcement agencies are intensifying their efforts to combat crypto-related crimes, as highlighted in various publications.