CZ Situation Is Calm And Resolved: Binance Co-Founder

Binance co-founder — He Yi — expressed confidence in the upcoming sentencing of the company’s former CEO, Changpeng Zhao (CZ).

In a recent update on Binance’s website, Yi stated that Zhao’s situation with the United States law enforcement agencies is calm. Yi also addressed concerns about Zhao’s regulatory position at the Binance Chinese Meetup in Dubai.

Possible Outcomes for Zhao

In her remarks about CZ’s situation, Yi expressed her confidence in the current state of affairs, calling it the best possible outcome given the circumstances. Yi’s statement comes a few weeks before CZ’s upcoming sentencing in the United States.

The former CEO admitted to a felony charge and now awaits the decision of the US District Court for the Western District of Washington, presided over by Judge Richard Jones. Zhao’s case centers on his admission of failing to maintain an effective Anti-Money Laundering (AML) program during his stint as Binance arrowhead.

As part of his plea agreement, Zhao resigned as CEO of Binance. Furthermore, he agreed to a $4.3 billion settlement to resolve civil regulatory enforcement matters in the US. Notably, this settlement excludes any potential legal actions by the US Securities and Exchange Commission (SEC), leaving room for additional legal consequences.

CZ’s Legal Dilemma

Armed with the power granted by US sentencing guidelines, Judge Jones can impose a harsh sentence on Zhao, including a decade in prison. However, the range specified in the guidelines for his misdeed paints a different picture, notably an imprisonment of up to 18 months.

Meanwhile, there is widespread speculation that Zhao can avoid jail time entirely due to his cooperation with the legal proceedings, and his decision to plead guilty may tip the scales of justice in his favor. Last month, the court issued a strict order directing Zhao to surrender his Canadian passport to the authorities, guaranteeing that he doesn’t leave United States shores until his sentencing proceedings are completed.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.