The sentencing of former Binance CEO Changpeng Zhao has been postponed to April 30 instead of a formerly scheduled February 23. The postponement notice came out of a US Federal Court with no clear reasons as to why there will need to be another two months before the sentencing.
Zhao, popularly known as CZ, pled guilty to money laundering violations last year in November – an event that rocked the world’s largest crypto exchange to its roots. The plea would cost the giant crypto exchange $4.3 billion in fines and settlements with the government. On the other hand, Zhao who agreed that he had “made mistakes” for which he must take responsibility was set back $50 million in fines and agreed to step down as the company’s CEO.
CZ was offered bail last year on a $175 million bond but surprisingly was denied permission to travel out of the United States. A ruling on the bond terms allowed him to return to the UAE, however, following his plea, the US Department of Justice (DOJ) put it on hold, declaring him a flight risk. The court filing then insisted that he remain in the US until his sentencing, citing his UAE citizenship and enormous financial resources that could threaten his case in the US.
According to the prosecution, it will be impossible for CZ to abandon his family when it’s time for the sentencing and return to the US to face up to 18 months in prison potentially. Later on December 22nd last year, CZ sent a letter to Judge Richard A. Jones, seeking to be allowed to be “present for the hospitalization and surgery” of a family member in the UAE.
Zhao didn’t mind “pledging all his equity in Binance US ” worth $4.5 billion, just in case the court had concerns about his travel. However, the court rejected the request, meaning CZ would be stuck in the US till his sentencing.
Under Federal laws, violating the Bank Secrecy Act should get an offender up to 10 years in jail plus fines. In Zhao’s case, he faces up to 18 months behind bars and has agreed to not appeal his sentence provided it does not exceed that duration.
He has paid $15 million cash to a DWT Trust account. His sister pledged a $5 million property, and two other guarantors also put up $250k and $100 to secure his $175 million bail bond. Zhao is permitted to travel freely around the United States but can’t travel to the UAE because he could easily forfeit the bail bond and live comfortably with minimal chances of extradition once he’s in the UAE.
In November last year, Zhao stepped down as CEO, passing the baton to Richard Teng, the company’s former Global Head of Regional Markets. This was part of the settlement deal with the US Department of Justice. Teng, who’s still trying to fill CZ’s shoes, has since continued to build on his legacy to take the company to greater heights. CZ’s fate will be sealed on April 30 if the court doesn’t initiate a subsequent postponement.