Nikolas Sargeant
Changpeng Zhao, commonly known as CZ, is facing a potential 18-month prison term, although federal prosecutors are reportedly seeking a more extended sentence. Despite repeated requests for his return to the United Arab Emirates (UAE), Zhao continues to stay in the US after securing his release on a $175 million bail.
In November 2023, Zhao took significant steps to resolve conflicts with US regulatory authorities, resigning from his position as CEO of Binance and relinquishing his role as Chairman of the Board of Directors of the US division of the exchange. The charges against Zhao primarily involve allegations of money laundering.
In December, Zhao's request to return to the UAE was denied by the court, following his guilty plea in November. The US Justice Department prosecutors argue that there is a "substantial risk" that Zhao may not return to the United States, citing his substantial assets, close ties to the UAE, and the absence of an extradition treaty between the UAE and the US.
Simultaneously, Binance agreed to pay $4.3 billion in fines and restitution as part of a guilty plea related to conspiracy charges, including operating an unlicensed money-transmitting business and violating the International Emergency Economic Powers Act.
