- A US district court just approved the $4.32 billion guilty plea of Binance.
- The amount is the largest fine ever given in US history.
- US prosecutors motion the court to tighten the bond conditions of the co-founder and former CEO of the crypto exchange, Changpeng “CZ” Zhao, ahead of his sentencing in April.
The Binance Case
US District Judge Richard Jones granted the $4.32 billion guilty plea of Binance on Friday in Seattle. The penalties cover a $1.81 billion criminal fine and $2.51 billion of forfeiture based on a report by Reuters. The amount is the largest fine ever slapped by the court by far.
The penalties stem from several cases filed against Binance in November last year, which include anti-money laundering law violations, operating an unlicensed business, and failure to abide by US sanction laws. The company pleaded guilty to all charges set forth by the Department of Justice (DOJ), the Commodity Futures Trading Commission (CFTC), the Office of Foreign Assets Control (OFAC), and the Financial Crimes Enforcement Network (FinCEN).
Meanwhile, its then-CEO Changpeng Zhao also admitted the company’s failure to comply with the US Bank Secrecy Act/Anti-Money Laundering (BSA/AML) regulations under his watch. For this, the former exec is facing a $150 million personal penalty in favor of the CFTC. He’s currently on a $175 personal recognizance bond.
CZ’s Tighter Leash Ahead of Sentencing
CZ was initially scheduled to undergo sentencing on February 23 but it was later moved to April 30. He is presently in the US after he was denied by the court to travel back to the UAE in December last year.
The former Binance boss was deemed a flight risk by Judge Jones due to his “enormous wealth.” The lack of an extradition treaty between the US and UAE was another key consideration for the rejection of CZ’s request. This came despite Zhao pledging even his equity in Binance.US, which is now worth $4.5 billion.
As his sentencing draws near, US prosecutors are motioning for a tighter leash on CZ to ensure his cooperation. According to CNBC, the proposed amendments to his bond include at least three days’ notice to the prosecutors and pretrial services for any plans to travel within the US to provide them enough time to raise their potential objections.
US authorities are also asking the court to order the surrender of Zhao’s Canadian passport and for the issuance of a bar in applying for another one without a judicial order. Likewise, they are seeking to bar CZ from changing his place of residence without court permission.
The former Binance CEO’s legal team objected to the revision of his bond conditions.
