"It seems that the crypto market will not be affected even if CZ goes to jail."
The legal battle involving the founder of the cryptocurrency exchange Binance, Changpeng Zhao (CZ) is reportedly getting more complicated when the Department of Justice (DOJ) is not only pushing for a travel ban but also wants to impose a 10-year prison sentence.
In response to Magistrate Judge Brian Tsuchida's decision to allow CZ to stay in the United Arab Emirates (UAE) before his sentence, DOJ lawyers said he should stay in the United States (US) until he is sentenced and be prohibited from going to his home in the UAE.
Not only that, the DOJ also filed felony* charges against CZ for violating the Bank Secrecy Act which resulted in Binance having to pay $4.2 billion in settlement which is the largest penalty in the history of the US Treasury and FinCEN.
*Serious crimes that threaten a community
The US government argued that CZ's privileged status as a UAE citizen obtained by invitation could prevent his extradition back to the US.
In a recent court filing, the government revealed that CZ may be sentenced to 10 years in prison although his expected sentence is about 12 to 18 months.
The sentencing hearing against CZ will be scheduled for February 23, 2024 while the court's decision on whether or not CZ can go to the UAE before sentencing is likely to happen in the near future.
Currently, the crypto exchange is about to embark on a new era as Richard Teng, a seasoned veteran of the financial ecosystem, has been named as the successor to Binance's Chief Executive Officer (CEO).
