May 23, 2024
Binance Co-Founder He Yi Believes CZ's Legal Outcome Is 'Most Optimal' Given Circumstances
Policy & Regulation

Binance Co-Founder He Yi Believes CZ’s Legal Outcome Is ‘Most Optimal’ Given Circumstances

Former Binance CEO Changpeng Zhao, known as CZ, is in a “positive situation,” according to the cryptocurrency exchange’s co-founder, He Yi. CZ is set to be sentenced in the United States on one felony charge on April 30.

Co-Founder Speaks Out

At the Binance Chinese Meetup held during the Token2049 conference in Dubai, Yi dispelled concerns over the exchange’s regulatory status, asserting that CZ’s current standing in the US is “largely peaceful” and “past regulatory pressures have been internally anticipated.”

She added that the situation is “the most optimal outcome given the circumstances.”

Sentencing Details

CZ is facing a possible prison sentence of up to 10 years, though sentencing guidelines suggest a range of 12 to 18 months.

The charge stems from a settlement reached in November, which also required Binance to forfeit $4.3 billion. The settlement led to CZ’s resignation as Binance CEO.

Currently, CZ is free in the US on a $175-million bond, with travel restrictions. He requested permission to travel to Dubai, where he resides, due to a medical situation involving one of his children.

In response, the U.S. Attorney’s Office sought to seize his passports. CZ holds both a Canadian passport and United Arab Emirates citizenship.

Source: CryptoCoins68

Binance’s New Direction

Binance has been distancing itself from CZ since his resignation as CEO. Richard Teng, the former Binance head of regional markets outside the US, took over as CEO and has emphasized that Binance is “totally different” under his leadership. Earlier this month, the exchange formed a board of directors.

Binance received a Virtual Asset Service Provider (VASP) license in Dubai. As part of the licensing conditions, CZ reportedly had to relinquish voting rights in the local entity, Binance FZE, although Binance has not commented on this claim.

The outcome of CZ’s sentencing will determine the next steps for the crypto entrepreneur and may further influence the direction of Binance’s operations in the future.


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