According to former SEC official John Reed Stark, ChangPeng Zhao (CZ), the former CEO of Binance, is now facing a potential prison sentence of up to 10 years.
As reported by U.Today, the U.S. Department of Justice (DOJ) has charged and received a guilty plea from CZ for violating the Bank Secrecy Act.
The exchange also agreed to pay a massive $4.3 billion fine after being slapped with damning charges.
The DOJ's growing frustration
In a recent DOJ court filing, it was disclosed that the prosecution might argue for the maximum 10-year term. This is despite the fact that legal experts initially anticipated a 12–18-month sentence for CZ.
The DOJ expressed clear frustration after Magistrate Judge Brian Tsuchida allowed CZ to travel to and live in the UAE until his sentencing.
This decision is contentious given CZ's billionaire status, guilty plea, and residence in a country that does not extradite to the U.S.
All eyes are on the upcoming decision regarding CZ's travel permissions. Judge Richard A. Jones is expected to review Magistrate Judge Tsuchida's bail order soon, with significant implications for CZ's ability to leave the U.S. before sentencing.
CZ's future plans
In his recent post, CZ says that he plans to take a break by turning off his phone and stepping away from the relentless pace of his work. Following this period of rest, he intends to engage in passive investing, focusing on becoming a minority token/shareholder in startups, particularly in sectors like blockchain, Web3, DeFi, AI, and biotech.
CZ is especially excited about having more time to explore DeFi. He doesn’t envision himself leading a startup as a CEO again.
It remains to be seen whether or not CZ will be able to fulfill his plans.
Tomiwabold Olajide
Denys Serhiichuk
Godfrey Benjamin
