The criminal sentencing for Changpeng “CZ” Zhao, the founder and former CEO of Binance, has been postponed to April 30. Initially scheduled for Feb. 23, the sentencing has been rescheduled following a “notice of rescheduled hearing” filed in a Seattle Federal Court on Feb. 12. Zhao pleaded guilty to money laundering charges and faces a potential 18-month prison sentence.
A filing by the prosecution on Nov. 24 suggested that Zhao may face a harsher punishment than anticipated. According to former U.S. Securities and Exchange Commission official John Reed Stark, Zhao could face 12–18 months in a minimum security prison under U.S. sentencing guidelines.
Zhao’s legal team is expected to seek no jail time or an alternative sentence, possibly combining prison time with home detention and probation. He is currently out on bail with a $175 million bond and resides in the U.S. awaiting sentencing.
A U.S. federal court barred Zhao from traveling outside the U.S. on Dec. 29, 2023, denying his request to leave for Dubai. Zhao’s lawyers offered his equity in Binance.US as security, valued at approximately $4.5 billion based on a funding round two years ago, to address flight risk concerns.
On Nov. 21, Zhao pleaded guilty to failing to maintain an effective Anti-Money Laundering program at Binance and reached a $4.3 billion settlement with the U.S. government for allegedly enabling illicit fund transfers through the exchange. As part of the settlement, he stepped down as CEO of Binance.
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