The U.S. District Court for the Western District of Washington in Seattle on Wednesday accepted the guilty plea filed by Changpeng Zhao, the founder of Binance. The former CEO of the cryptocurrency giant admitted last November to having violated American anti-money laundering (AML) laws.
Court accepts CZ’s guilty plea
Judge Richard Jones formally accepted Changpeng Zhao’s guilty plea, following his confession in November. According to court documents, the court validated the guilty plea of Changpeng Zhao, known as “CZ”, on December 6. The latter now risks up to 18 months in prison.
The US Department of Justice had requested a record fine of $4 billion as part of an out-of-court settlement. However, the magistrate has not yet ruled on the possibility for CZ to leave American territory by then.
“This Court, having considered the Report and Recommendation of the United States Magistrate Judge, to which there is no timely objection, and subject to consideration of the Plea Agreement, hereby accepts presents the defendant’s guilty plea. The defendant, found guilty of such an offence. »has declared the judge in his decision.
Towards a tightening of crypto regulations
The legal saga of the fallen tycoon illustrates the rise of regulation of the crypto sector in the United States. Several experts also expect that the authorities will further tighten the noose around exchange platforms and stablecoins.
“ This departure symbolizes the transition to a demanding phase of compliance for the entire industry“, estimates Charles Hoskinson, the boss of Cardano. For his part, former senior SEC official John Reed Stark believes that CZ’s long stay across the Atlantic will likely uncover new irregularities within Binance.
Anyway, the to plead guilty of the world’s leading figure in the crypto sector marks a turning point in the supervision of the Wild West of cryptocurrencies. It remains to be seen what concrete sanctions will ultimately be imposed against him on February 23.
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