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Former Binance CEO Out From Custody on $175 Million Bond, What’s Next? – Crypto News

Published

2 years ago

November 22, 2023

Dripp

While stepping down as the CEO of Binance on Tuesday, November 21, Changpeng Zhao was part of a major court hearing, where he pleaded guilty to a range of securities law violations. However, CZ has been released from custody against the $175 million personal recognized bond.

Binance’s CZ Can Return to Dubai

As per court documents, Changpeng “CZ” Zhao is depositing $15 million into a trust account held by Davis Wright Tremaine, separate from the bond. He commits to forfeit funds if he breaches release terms and secures two guarantors, pledging $250,000 and $100,000, respectively. A scheduled sentencing is on Feb. 23, 2024, at 9 a.m. Pacific Time.

Conditions for Zhao’s release include refraining from illegal activities, tampering with witnesses or victims, and consuming non-prescribed controlled substances—typical stipulations in a bond release.

The order seemingly permits Zhao to leave the U.S., with a requirement to return 14 days before sentencing. However, federal prosecutors express a desire to appeal this provision to a higher-ranking judge, and Zhao agrees to stay in the Seattle area until Nov. 27, allowing discussions to resolve the dispute with the district judge overseeing the case.

Zhao Can’t Appeal for Sentences Exceeding 18 months

As part of an agreement following his guilty plea, Changpeng “CZ” Zhao relinquished the right to appeal sentences exceeding 18 months, stated Magistrate Judge Brian Tsuchida in court on Tuesday. According to a separate court document, Zhao and the Department of Justice (DOJ) mutually consented to a $50 million fine, with no mention of imprisonment.

In connection with the settlement between Binance, the exchange Zhao founded in 2017, and the U.S. Department of Justice, Zhao resigned from his position. The settlement entails Binance paying $4.3 billion in penalties to various federal agencies and submitting to oversight by multiple monitors for the next five years.

Binance settled the charges not only with the DOJ but also with the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Asset Control (OFAC), and the Commodity Futures Trading Commission—respective authorities overseeing money laundering, sanctions, and federal commodities trading.

The Binance settlement has put the broader crypto market under massive selling pressure. Also, its native cryptocurrency BNB Coin suffers the most losing over 12% in the last 24 hours.