Former Binance CEO Changpeng Zhao, also known as CZ, is currently in a favorable situation, according to He Yi, co-founder of the cryptocurrency exchange. CZ is set to be sentenced on April 30 in the United States on one felony charge. During the Binance Chinese Meetup held at the Token2049 conference in Dubai, Yi addressed concerns regarding regulatory status.
Yi stated that when CZ receives his sentence in the District Court of Western Washington, he could potentially face a prison term of up to 10 years. However, the recommended sentence in the guidelines is between 12 to 18 months. This single charge stems from a settlement reached in November, which also required the company to forfeit $4.3 billion. As a result of this settlement, CZ was forced to step down as Binance CEO.
CZ is currently free in the United States on a $175 million bond, but with travel restrictions. He has made two requests to travel to Dubai, where he resides, due to a medical situation concerning one of his children. In response, the U.S. Attorney’s Office has attempted to seize his passports. CZ holds both a Canadian passport and is a citizen of the United Arab Emirates.
Yi, who is the mother of at least two of CZ’s three children, denies being in a romantic relationship with him at present. She does, however, own an undisclosed stake in the exchange.
Since CZ’s resignation as CEO, Binance has distanced itself from him. Richard Teng, the former Binance head of regional markets outside the United States, has taken over as the new CEO. Teng has emphasized that under his leadership, Binance is now “completely different.” The exchange has also formed a board of directors earlier this month.
Reports have surfaced stating that Binance has obtained a Virtual Asset Service Provider (VASP) license in Dubai. As a condition of this license, CZ was allegedly required to relinquish his voting rights in the local entity, Binance FZE. However, Binance has chosen not to comment on this claim.
US enforcement agencies are intensifying their efforts to combat crypto-related crime, as evidenced by recent developments.