Former Binance CEO Changpeng Zhao, also known as CZ, is reportedly in a “positive situation” amidst his upcoming sentencing in the United States. According to Binance co-founder He Yi, who spoke at the Binance Chinese Meetup in Dubai, CZ’s regulatory status is not a cause for concern. While the exact quote from Yi was not provided, it was conveyed that she believes CZ’s current standing is favorable given the circumstances.
CZ is set to be sentenced in the District Court of Western Washington on April 30, and if convicted, he could face up to 10 years in prison. The recommended sentence according to guidelines is 12 to 18 months. This felony charge stemmed from a settlement reached in November, which also required Binance to forfeit $4.3 billion and resulted in CZ’s resignation as CEO.
Despite the pending sentencing, CZ is currently free in the United States on a $175-million bond, but with travel restrictions. He successfully obtained permission to travel to Dubai twice due to a medical situation involving one of his children. The U.S. Attorney’s Office sought to seize his passports in response. CZ holds both Canadian and United Arab Emirates citizenship.
Yi, who is the mother of at least two of CZ’s children, clarified that they are not currently involved in a romantic relationship. She also owns an undisclosed stake in Binance. Since CZ’s resignation, Binance has been distancing itself from him and has appointed Richard Teng as the new CEO. Teng has stated that Binance operates under a different approach with him at the helm.
Binance recently obtained a Virtual Asset Service Provider (VASP) license in Dubai, according to reports. As a part of this licensing condition, CZ allegedly had to relinquish his voting rights in the local entity, Binance FZE. Binance has chosen not to comment on this claim.
CZ’s sentencing in the United States is approaching, but according to He Yi, the regulatory situation at Binance remains stable. CZ is currently free on bond but with travel restrictions, and Binance has been progressing under its new CEO, Richard Teng. The exchange also obtained a VASP license in Dubai, which may have come with certain conditions for CZ. Binance has chosen not to address these specific claims.
Binance forfeiting $4.3 billion? CZ’s resignation as CEO? That’s hardly enough accountability for their wrongdoing.
The collaboration between Binance and regulatory bodies, evident in the VASP license, showcases the importance of compliance and transparency. Well done!
Cheers to Binance for obtaining the VASP license in Dubai! Exciting times ahead! 🥳💼