The criminal sentencing of Binance founder Changpeng Zhao on a money laundering rule charge has been postponed until April 30, according to a notice filed in federal court in Seattle on Monday. The docket entry did not explain what would be a two-month delay in sentencing Zhao, also known as CZ, who is currently free on a $175 million release bond in the United States.
Zhao pleaded guilty on November 21st to a charge of failure to maintain an effective anti-money laundering program at Binance, the world’s largest cryptocurrency exchange. As part of his plea agreement, he consented to step down as CEO of Binance and pay a $50 million fine. Federal sentencing guidelines indicate a maximum sentence of 18 months in prison for Zhao, although prosecutors have reportedly considered pursuing harsher punishment.
Simultaneously, Binance consented to pay $4.3 billion in fines and restitution as part of its guilty plea to conspiracy to operate an unlicensed money-transmitting firm. Treasury Secretary Janet Yellen criticized Binance for “allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism.”
Originally scheduled for February 23rd, Zhao’s sentencing was pushed back without explanation to the end of April. The judge previously denied Zhao’s request to travel home to the United Arab Emirates before sentencing, citing his wealth and lack of US ties as flight risks. Another subsequent request to travel for an unspecified medical emergency was also rejected after Zhao offered to post his Binance equity as collateral.
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