Yi He, one of the co-founders of the cryptocurrency behemoth Binance, has expressed optimism regarding the legal situation of the exchange’s former CEO, Changpeng Zhao. The ex-Binance boss is presently awaiting a sentencing hearing scheduled for April 30 in the US.
During a Binance Chinese community meetup in Dubai, Yi He characterized Zhao’s current status as “largely peaceful” and acknowledged that past regulatory pressures had been anticipated internally by Binance. She views “the existing situation to be the most optimal outcome given the circumstances.”
The previous year was a turbulent one for Binance, largely attributed to an extensive federal investigation into its co-founder and then-CEO, Changpeng Zhao. This investigation resulted in substantial fines amounting to billions of dollars and Zhao’s resignation from his CEO position. Zhao also admitted guilt to charges related to violating anti-money laundering regulations and now faces the prospect of imprisonment.
Currently, Zhao is out on bail in the United States after posting a $175 million bond. In December, a decision by a US Federal Court restricted his travel, rejecting his request to visit Dubai due to concerns about potential flight.
According to federal sentencing guidelines, Zhao could potentially receive up to 18 months in prison, although prosecutors have recommended a maximum sentence of 10 years.
Following Zhao’s departure, Binance appointed Richard Teng as its new CEO. Teng, who previously led Binance Singapore and oversaw regional markets, assumed the global leadership role, marking a new phase for the exchange amid ongoing regulatory scrutiny.
A federal judge denied a request from Binance founder Changpeng “CZ” Zhao to travel to the United Arab Emirates, despite Zhao offering his $4.5 billion Binance equity as security.
This denial was not the first; in December, Judge Jones rejected another travel application to the UAE, citing Zhao’s “enormous wealth” and potential flight risk. The judge highlighted Zhao’s considerable assets abroad, lack of ties to the United States, and his family’s residency in the UAE as factors in the decision.
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Zhao’s defense contends that he does not pose a flight risk, as previously determined by Judge Brian Tsuchida, and argues that the government has not provided sufficient grounds for an appeal to overturn this determination. They emphasized CZ’s global prominence as a public figure and his track record, including no criminal history and the non-violent nature of his offenses, in arguing against the necessity of him remaining in the US pending sentencing.
