Following the latest court ruling against Changpeng Zhao (CZ), we can say that more negative news will come for Binance & its former CEO CZ and we should remain ready to face it mentally. But one interesting thing in these legal hurdles we can see which is favouring Binance’s future.
Changpeng Zhao (CZ) is co-founder & former CEO of Binance, the top crypto exchange by crypto trade 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 into a trust account, and three guarantors secured the bail with over $5 million in collateral.
In the latest court ruling, the court judge ruled that CZ couldn’t leave the US before his sentencing. This is very bad news for CZ because before this he was planning to go to UAE where his family lives and also for this he appealed in court to get legal approval.
Indeed the US has no treaty with UAE authorities for the extradition of any person for the criminal proceedings, so if CZ will leave the US for UAE then in that situation the US authorities can’t do anything to bring CZ back to the US.
So far CZ showed full cooperation in the Binance Vs US legal fight and he never tried to remain away from the US jurisdiction, obviously to maintain the reputation of the exchange publicly.
According to some reports, CZ will face jail punishment for a minimum of 18 months. On the other hand, some reports claimed that he may face 10 years of jail sentence.
Over the last 7 days, the trade price of Binance’s native Cryptocurrency Binance Coin (BNB) crashed by 13%, despite the exchange deciding to settle the case with the US authorities with a net $4.3 billion fine.
So far the decision taken by the Binance Co-founder has shown that he is ready to face every type of legal action but is not ready to create any bad situation for the Binance exchange. In short, he will not take any action that will ruin the reputation of the exchange, to maintain the trust level among customers.
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