The sentencing of Changpeng “CZ” Zhao, the co-founder of cryptocurrency exchange Binance, has been reportedly postponed.
What Happened: Zhao’s sentencing, has been delayed by U.S. prosecutors to April 30, reported CNBC, citing a notice on Monday in Seattle federal court.
Zhao was indicted for money laundering and sanctions infringements by the U.S. Department of Justice in November, following an extensive investigation. In the wake of these charges, Zhao stepped down as CEO of Binance, handing over the mantle to Richard Teng, the ex-Global Head of Regional Markets at Binance.
Binance faced a $4.3 billion fine and was instructed to stop all operations in the U.S. Despite being released on a $175 million bond, travel restrictions have been placed on Zhao by District Judge Richard Jones, after prosecutors raised concerns about him being a possible flight risk.
Binance’s legal representatives filed numerous documents in federal court last December, in an effort to have the lawsuit from the Securities and Exchange Commission dismissed. Zhao, who has already shelled out $50 million in fines, could face up to 18 months in federal prison, as per CNBC.
"Binance was allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism," said Treasury Secretary Janet Yellen when the company and Zhao pleaded guilty.
Why It Matters: Last month, Zhao faced a refusal from a federal judge to travel to the United Arab Emirates, despite offering a $4.5 billion equity as a guarantee for his return to the United States, reveals a new filing.
This equity value is tied to Binance's last fundraising event, as stated by Zhao's legal representatives in a December letter to Judge Jones.
Photo Courtesy: Wikimedia Commons
Price Action: Bitcoin BTC/USD was trading at $50,039, up 2.35% in the last 24 hours, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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