CZ has reportedly begun serving his sentence in Lompoc federal prison.
Changpeng Zhao (CZ) is the former CEO and co-founder of Binance crypto exchange. In 2022, he was accused of violating AML measures in the US as his crypto exchange allowed US citizens to use the platform without the necessary KYC verification and later Binance was accessible in the US jurisdiction via Virtual Private Network (VPN) – services. Binance’s team reportedly deliberately allowed ways for US citizens to access Binance, which was operating without all necessary regulatory approvals.
On May 31, 2024, CNBC reported that CZ is now serving a four-month sentence in a low-security federal prison in Lompoc, California.
Earlier this, on May 1, US District Court Judge Richard Jones sentenced CZ to seven months in prison on money laundering charges.
Before the court’s verdict, the majority of US authorities tried to punish CZ to two to three years in prison, but the judge noted that CZ himself had admitted to all the charges, despite the fact that there was no real evidence against him to support this prove. costs.
Binance vs Legal Hurdles
Currently, the crypto exchange Binance is facing huge legal hurdles in multiple jurisdictions. Even the Binance company settled its case with the US authorities, but its case is still active against the US Securities and Exchange Commission (SEC).
According to the SEC’s lawsuit, Binance had unlawfully operated as an unregistered securities exchange, broker and clearing agency.
Experts believe that clarity on the rules and laws surrounding cryptocurrencies will resolve these conflicts between the regulatory body and the top crypto player, as the SEC body has used all the traditional rules and laws against Binance, which do not apply to the digital assets .
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