Former Binance CEO, Changpeng Zhao, was originally scheduled to face trial on February 23rd for money laundering charges, potentially facing up to 18 months in prison.
Criminal Sentence for Changpeng "CZ" Zhao Postponed to April 30th
The announcement of the trial postponement was made at the federal court in Seattle on February 12th. The original date for Zhao's sentencing was set for February 23rd after he admitted to money laundering charges. His expected sentence could reach up to 18 months.
Legal Dispute Regarding Sentence Length
Although the defense argues that Zhao faces only a "short" sentence and has no motivation to flee, the fact is that the upper limit of the sentence could reach up to 18 months. Some believe that a longer sentence is unlikely.
Potential Sentence According to American Guidelines
According to former US Securities and Exchange Commission official, John Reed Stark, Zhao could face a 12–18-month sentence in minimum security prison according to American sentencing guidelines. His legal team is likely not to request any jail time or alternative sentencing, aiming for house arrest and probation instead.
Current Status of Zhao and The Legal Process
Zhao is currently free after posting a $175 million bail and is staying in the United States, awaiting his sentence. The court decision has prohibited him from leaving the USA and rejected his request to travel to Dubai before the trial.
Settlement with the American Government and Resignation as CEO
On November 21st, Zhao admitted to an inadequate anti-money laundering program at Binance and reached a settlement with the American government for $4.3 billion. As part of this settlement, he resigned as the CEO of the cryptocurrency exchange.
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