After the latest court ruling against Changpeng Zhao (CZ), we can say that there will be more negative news for Binance and its former CEO CZ and we must remain prepared to face this mentally. But we can see one interesting thing in these legal hurdles that favors Binance’s future.
Changpeng Zhao (CZ) is the co-founder and former CEO of Binance, the largest crypto exchange by crypto trading volume. Last week, CZ was found guilty of violating the Bank Secrecy Act and subsequently resigned as CEO of Binance. The court granted his release on a $175 million personal recognizance bond. Zhao deposited $15 million in a trust account, and three sureties secured the bail with more than $5 million in collateral.
In the court’s latest ruling, the judge ruled that CZ could not leave the US before his sentencing. This is very bad news for CZ, because previously he planned to go to the UAE, where his family lives, and for this too he appealed to the court to get legal approval.
Indeed, the US has no treaty with the UAE authorities for the extradition of anyone for criminal proceedings, so if CZ leaves the US for the UAE, in that situation there is nothing the US authorities can do to bring CZ back to the USA
So far, CZ has shown full cooperation in the legal battle between Binance and the US and has never tried to stay away from US jurisdiction, obviously to uphold the exchange’s reputation publicly.
According to some reports, CZ will face a prison sentence of at least 18 months. On the other hand, some reports claimed that he might receive a ten-year prison sentence.
Over the past seven days, the trading price of Binance’s own Cryptocurrency Binance Coin (BNB) has fallen by 13%, despite the exchange deciding to settle the case with US authorities with a net fine of $4.3 billion.
So far, the Binance co-founder’s decision has shown that he is willing to face any kind of legal action, but not willing to create a bad situation for the Binance exchange. In short, he will not take any action that will ruin the reputation of the exchange, in order to maintain the level of trust among the customers.
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