The CEO and founder of Binance, Changpeng Zhao, recently pleaded guilty to charges of money laundering. In a recent development, US District Judge Richard Jones ordered him to stay within the country until sentencing.
Quick Take
- The court’s order for CZ to stay within the US until early next year serves as a legal challenge to Binance.
- The crypto market continues to display signs of great resilience.
- CZ might face increased legal action from regulators including the SEC.
The US District Court for the Western District of Washington in Seattle has accepted CZ’s plea revolving around money laundering charges. This followed the previous entry of a guilty plea with the US Department of Justice.
Recent reports highlight that the CEO of Binance is expected to face almost 18 months in prison. He has agreed not to appeal any sentence of that duration. Judge Jones mentioned that the defendant has considerable wealth and property abroad and has no ties with the US. Even if he is allowed to leave the country, there is a risk of not being able to secure his return.
He stated,
“The defendant has articulated justifications that in most cases would cause the government’s motion to be denied. However, a critical feature of the government’s motion is the extent of the defendant’s enormous wealth and absence of an extradition treaty with the UAE. In addition, the defendant’s family resides in the UAE and there is no indication he has any other ties to the United States. While the defendant has indicated he will be asking for a lesser sentence, the government has indicated it may be asking for as much as 18 months of incarceration. Consequently, the defendant is not facing an insignificant sentence.”
Binance Founder is Expected to Stay in the US Till February 2024
With the concerns of CZ fleeing to the UAE, where his family resides, the CEO’s lawyers have argued that a considerable bail package had already been paid in full, and he was merely visiting the US voluntarily.
These lawyers also argued that CZ should be allowed to go back to meet his family. However, things did not exactly go as planned. Current reports suggest that CZ would have to stay in the US till at least February 2024.
Despite the current possibility of Binance’s CEO facing 18 months in prison, the findings of the US DOJ coupled with the guilty plea agreement could force CZ into several additional legal troubles from other regulators, including the SEC.
BNB Continues to Remain Strong Despite CZ’s Impending Sentencing
Despite CZ’s expected shift behind bars, the native token of the Binance exchange, BNB, was seen to be trading in the green. BNB has joined the ranks of additional cryptocurrencies that have set the stage for the widespread recovery of the crypto market.
The overall crypto market is maintaining bullish momentum as Bitcoin continues to lead by touching a high of $45,000. Ethereum and several other altcoins have also gained massively in the past week to break through resistance levels.
At the time of writing, BNB has moved up by 1.33% over the previous 24 hours. The surge has catapulted the price of the token to almost $233.68. Plus, the market cap currently stands at the $35 billion mark. The overall trading volume declined by 0.31% to approximately $815 million.
