Binance Co-founder Yi He Confirms CZ’s Positive Regulatory Standing in US

by

At a recent Binance gathering for the Chinese community in Dubai, Yi He, one of the company’s co-founders, addressed worries about Changpeng Zhao (CZ), the ex-CEO, and his current status regarding regulatory issues in the US. According to available information, He eased concerns by stating that CZ was currently in a favorable position with respect to these uncertainties.

Last year, the CEO role at Binance was relinquished by the Canadian citizen of Chinese descent as a condition of a settlement between the company and American regulators over rule infringements. However, it was revealed by a Binance co-founder that CZ’s situation in the US is generally calm, and past regulatory challenges had been internally prepared for.

CZ to Face Sentencing in the US

Before Zhao’s sentencing hearing on April 30, 2024, at the US District Court of Western Washington, there have been discussions about his regulatory status in the US. (Or: Discussions about Zhao’s regulatory standing in the US have arisen prior to his scheduled sentencing hearing on April 30, 2024, at the US District Court of Western Washington.)

Should Judge Richard Jones find the former Binance CEO at fault, he may be imprisoned for as long as ten years, even though the suggested sentence based on guidelines is between twelve and eighteen months.

CZ admitted to breaking the law in November 2023 by not establishing proper anti-money laundering measures and violating the Bank Secrecy Act while holding the position of company head, resulting in this legal predicament.

Although Binance denied all allegations against them and reached a $4.3 billion settlement, US officials continue to pursue legal action against Binance’s CEO, CZ.

Binance Settlement Excludes SEC

Binanne’s agreement with US regulators in June 2023 excluded the Securities and Exchange Commission (SEC). Later, in the same month, the SEC brought 13 accusations against Binance, Binance.US, and CZ personally.

The accusations encompassed mixing up clients’ funds, not preventing American customers from using the platform, and deceiving investors regarding the platform’s market monitoring mechanisms.

In response to SEC’s accusations, Binance made a request to dismiss the case. The exchange maintained that the regulatory body had not provided enough evidence for several alleged securities infringements. Furthermore, Binance asserted that the SEC was overstepping its bounds by trying to regulate digital assets without clear approval from Congress.

After reaching agreements with other regulatory bodies, CZ (Changpeng Zhao) and Binance must continue preparing for their case before the SEC (Securities and Exchange Commission), which is scheduled to take place following CZ’s sentencing hearing in late April.

US Crackdown on Crypto Bad Actors

Currently, the US authorities are taking stern actions against individuals engaging in illegal activities within the cryptocurrency sector. Notably, the US Department of Justice reported that Sam Bankman-Fried (SBF), a previous CEO of the defunct exchange FTX, has been found guilty of various fraud charges.

Previously renowned cryptocurrency advocate, SBF (Sam Bankman-Fried), received a sentence of 25 years in prison, followed by three years of supervision. The court mandated that he pays a penalty of $11 billion for masterminding illicit activities.

Recently, a U.S. judge ruled that South Korean businessman Do Kwon, the founder of Terra (LUNA), and his company Terraform Labs had committed securities fraud.

After a two-week long civil trial in the US, the judge handed down her verdict, doing so following the SEC’s legal action against the pair.

Read More

2024-04-19 15:45