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Former Binance CEO Lawsuit Moved To April

Key Points:

Former Binance CEO Changpeng Zhao’s sentencing for a money laundering charge has been postponed to April 30 by a Seattle federal court.
Zhao, facing a potential 18-month prison term, remains on $175 million bail in the US.
His attempts to return to the UAE were denied twice due to flight-risk concerns.

According to CNBC, the sentencing for Binance founder Changpeng Zhao, known as “CZ,” on a charge related to money laundering rules has been postponed until April 30, as per a notice from Seattle federal court on Monday. The reason for the two-month delay was not specified.

Sentencing Postponed: Former Binance CEO Legal Battle Extended

The former Binance CEO, a Canadian national, is currently out on a $175 million bond in the United States. He appeared before a Seattle court previously, pleading guilty to negligence in preventing money laundering at Binance, potentially facing a sentence of up to 18 months in prison.

Following a settlement agreement between Binance and the US Department of Justice in November 2023, the exchange agreed to pay a record fine of $4.3 billion to resolve the investigation. Additionally, Zhao was mandated to resign and prohibited from holding a management position at the exchange for three years.

Changpeng Zhao’s Ongoing Struggle in Bail and Legal Hurdles

Despite Zhao‘s attempts to return to the UAE, where the US lacks an extradition treaty, the court twice denied his application over fears of flight risk and the inability to freeze overseas assets. The former Binance CEO offered his shares in Binance.US as collateral, valued at $4.5 billion, yet the court rejected his plea to reunite with his family, citing concerns about the validity of the valuation.

Since his resignation, the former Binance CEO has maintained a lower profile on social media platforms compared to his previous activity levels. The uncertainty surrounding his legal battle and its implications for Binance continue to draw attention and speculation from industry observers and analysts.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.