Former Binance CEO Changpeng Zhao, commonly known as CZ, has seen his guilty plea accepted by a U.S. judge in connection to a case involving violations of anti-money laundering (AML) regulations.
In a recent filing in the U.S. District Court for the Western District of Washington in Seattle, Judge Richard Jones officially acknowledged Zhao’s guilty plea. This decision follows weeks of Zhao and Binance acknowledging their regulatory shortcomings regarding anti-money laundering practices.
Judge Richard stated, “This Court, having considered the Report and Recommendation of the United States Magistrate Judge, to which there has been no timely objection … hereby accepts the plea of guilty of the defendant … the defendant is adjudged guilty of such offense.”
The court’s acceptance marks a significant milestone in the legal proceedings, setting Zhao’s sentencing for February 2024. The resolution of this case is anticipated to establish a precedent in enforcing financial regulations within the cryptocurrency industry.
Zhao’s guilty plea, part of a broader settlement addressing his and Binance’s roles in AML and sanctions violations, includes a personal fine of $50 million and his resignation as Binance CEO. Currently out on bond, Zhao is set for sentencing on February 23, 2024, with a requirement to return to the U.S. two weeks before this date. However, Judge Jones recently mandated Zhao to stay in the United States for now, pending a final decision on these terms.
Simultaneously, Binance has agreed to a corporate settlement of $4.3 billion, marking one of the largest corporate penalties in history. This plea signals a significant development in federal investigations focusing on compliance practices within the cryptocurrency exchange.
Following Zhao’s guilty plea and subsequent resignation, Binance has undergone notable changes in its management structure. Former Binance director Richard Teng has assumed the role of CEO and emphasized the transformative changes the exchange has undergone. Teng stated, “Binance is now ‘totally different’ from its early days,” highlighting a commitment to growth and collaboration with global regulators.
