Binance’s founder and former CEO, Changpeng Zhao, has accepted money laundering charges brought by the US and has agreed to pay a $50 million fine as part of a settlement with the US Department of Justice. Zhao, who resigned from his CEO position, has requested permission from his lawyers to return to the United Arab Emirates where his family resides.
Zhao’s lawyers argued that he should be allowed to leave the US before receiving his sentence in February, after admitting to violating the Bank Secrecy Act. They stated that Zhao’s voluntary acceptance of the charges and appearance in court proved that he had no intention of fleeing.
Judge Brian Tsuchida found Zhao’s voluntary presence in the US and appearance in court convincing. Zhao’s lawyers emphasized in their court application that he posed no flight risk and offered a significant bail package.
Binance has agreed to pay a $4.3 billion fine this week, implement a compliance program, appoint independent monitors to review past transactions, and accept Zhao’s resignation as CEO. Richard Teng, Binance’s former regional markets head, has taken over as the new CEO.
Zhao was released on $175 million bail on November 21. However, his lawyers and the US Department of Justice have differing opinions on whether Zhao, who is a US citizen with his family residing in the United Arab Emirates, should stay in the US. If Zhao has to return to the US, he must do so two weeks before his sentencing date.
Zhao’s sentencing is expected to be announced on February 23, 2024. He is expected to receive a sentence of 18 months in prison and has agreed to pay a $50 million fine as part of the settlement.