Crypto Titan Changpeng Zhao Steps Back, But Will He See The Inside Of A Prison Cell?

Changpeng Zhao, the founder and former CEO of Binance BNB/USD, was released on a $175 million personal recognizance bond.

Earlier on Tuesday, Zhao admitted in court to breaching the Bank Secrecy Act.

U.S. authorities accused him of instructing Binance to permit American customers to access the platform without adequate know-your-customer or anti-money laundering protocols.

A recent court document revealed Zhao was securing his release by depositing $15 million in a trust account managed by Davis Wright Tremaine, separate from the bond, Coindesk reported.

Additionally, he agreed to forfeit these funds if he failed to comply with the release conditions. He was also securing two guarantors who pledged $250,000 and $100,000, respectively.

His sentencing is scheduled for Feb. 23, 2024, at 9 a.m. Pacific Time.

Zhao's release terms prohibited him from engaging in illegal activities, tampering with witnesses or victims or using controlled substances without a prescription, which are standard conditions for bond release.

Interestingly, the order seemed to permit Zhao to leave the U.S., provided he returned 14 days before his sentencing. Federal prosecutors expressed their intent to contest this provision with a higher-ranking judge during a hearing on Tuesday.

Also Read: Binance Customers Don't Sweat $4B Fine, Crypto Exchange Maintains Market Position

Zhao consented to stay in the Seattle area until Monday, Nov. 27, to allow time for the Department of Justice (DOJ) lawyers and his own legal team to resolve this issue with the district judge handling the case.

By pleading guilty under an agreement, Zhao waived his right to contest any sentence exceeding 18 months, as stated by Magistrate Judge Brian Tsuchida in court on Tuesday. Another court filing indicated Zhao and the DOJ agreed to a $50 million fine, though no prison time was specified.

As part of Binance's settlement with the DOJ, Zhao stepped down from his role at the cryptocurrency exchange he established in 2017.

Binance is set to pay $4.3 billion in fines to various federal agencies and subject to oversight by multiple monitors for the next five years.

Read Next: Coinbase CEO Armstrong Reacts To Binance CEO's Resignation: 'New Chapter For This Industry'

Photo: Changpeng Zhao, Stephen McCarthy/Web Summit via Sportsfile via Flickr Creative Commons