The effects of the agreement made at the end of November between the Binance exchange and US institutions are still ongoing. This agreement, which is the reason behind the recent rise in the cryptocurrency markets, eliminated a significant FUD and opened a clean slate for Binance. However, things may not be so easy for Binance founder CZ.
Binance, established by CZ years ago, is the largest exchange by market value and has been subject to numerous criticisms from its inception to its operations. It then battled a lengthy investigation by the Justice Department. Yet despite this, no high-risk crimes like unauthorized use of customer assets were detected.
We faced an indictment focusing on crimes stemming from KYC violations against US authorities. To avoid leading to a significant crash in the cryptocurrency markets before the 2024 elections and drawing the ire of investors, the authorities chose the path of settlement. In exchange for a $4.36 billion fine, Binance, CZ, and a former senior compliance officer will be released under supervision until the 3-year review period is completed.
However, CZ is still in the US and cannot return to his country until the verdict of the criminal case in February is decided.
The judge decided that Binance founder Changpeng Zhao cannot leave the US until his penalty is determined. This was not good news for CZ, who imagined himself back at his main residence in the United Arab Emirates by February 23rd. The judge believes that Zhao, due to his “great wealth” and lack of ties to the US, should not leave the country before serving his sentence.