The CEO of Binance, Changpeng Zhao on Tuesday pleaded guilty to money laundering. Zhao was probed by the United States for violating anti-money laundering requirements.
He pleaded guilty to causing the failure of the global crypto exchange. He also stepped down in order to end the probe according to Reuters. Zhao did this to sustain the anti-money laundering requirements.
What did Binance do wrong?
Well, according to the U.S. Gov, the giant crypto company led by its founder Changpeng Zhao had failed to report highly suspicious transactions on Binance. It is reported by Reuters that the transactions were over 100,000 with U.S. companies classified as bad organizations.
Binance is to pay a whopping sum of over $4.3B, while Changpeng Zhao is to pay $15oM as a penalty fee to the U.S. Gov. The penalty fee is going to a U.S. agency, the Commodity Futures Trading Commission.
The now-former CEO of Binance, Changpeng Zhao faces up to 1yr/6months months in prison. He has requested a U.S. judge to turn down the U.S. Justice Department’s request to not let him travel back to the United Arab Emirates according to a report by Reuters.
The U.S. Justice Department made this request to stop Changpeng Zhao from returning to his home until after his sentencing.
On the 23rd of November, via his lawyers, Changpeng Zhao asked the U.S. District Judge identified as Richard Jones to not go back on the decision made about his bail conditions.
A magistrate judge on the 21st of November had set Changpeng Zhao’s bail conditions. The bail conditions permitted the ex-CEO of Binance to leave the U.S. for UAE, his home before his sentencing.
Binance CEO, Changpeng Zhao Sentencing
The sentencing is set for the 23rd of February 2023 and Changpeng Zhao has also agreed to pay a bail bond of $175M. According to the U.S. Gov, Changpeng Zhao is a multi-billionaire who is a citizen of both UAE and Canada with high valued assets, hence it will be difficult to bring him back to U.S. soil if he chooses not to return from UAE.
The United States government said they do not have an extradition treaty with the United Arab Emirates which is Zhao’s destination if he leaves before the 23rd of February, 2024.
Changpeng Zhao’s lawyers were of the motion that the multi-billionaire posed no flight risk because he had voluntarily come into the U.S. for the probe. The lawyers also argued that he did not only accept full responsibility for his crimes, but Zhao also agreed to the huge bail package.
In addition, Zhao’s lawyers argued that the ex-CEO of Binance needs to take care of his family and three 3 kids, letting them prepare for his sentencing in 2024.
