Ex-Binance CEO Zhao’s Sentencing on US Charges Delayed to April

Bob Van Voris, Bloomberg News

Changpeng Zhao, chief executive officer of Binance Holdings Ltd., center, exits federal court in Seattle, Washington, US, on Tuesday, Nov. 21, 2023. Zhao pleaded guilty to anti-money laundering violations and agreed to pay a $50 million fine Tuesday under a sweeping deal worked out with the Justice Department designed to keep the company operating. , Bloomberg

(Bloomberg) -- Binance Holdings Ltd. founder Changpeng Zhao’s sentencing for failing to implement anti-money laundering policies was delayed to April from Feb. 23.

US District Judge Richard Jones in Seattle on Monday rescheduled Zhao’s sentencing without providing a reason. Zhao, the billionaire former head of the world’s largest cryptocurrency exchange, and Binance pleaded guilty in November as part of a broad agreement with prosecutors that allows the exchange to continue operating.

Binance agreed to pay $4.3 billion in fines and forfeitures.

Widely known as “CZ,” Zhao stepped down as Binance’s chief executive officer as part of the deal. He theoretically faces as much as 10 years in prison but is expected to get no more than 18 months. Zhao also agreed to pay a $50 million fine.

Zhao, who lives in the United Arab Emirates, is free on $175 million bond but must remain in the US until he’s sentenced, Jones ruled, agreeing with prosecutors that there was a risk he wouldn’t return. In December the judge denied Zhao’s request to travel to the UAE, despite his offer to post his $4.5 billion equity interest in Binance’s US arm as security.

A lawyer for Zhao didn’t immediately return an email seeking comment on the change in sentencing date.

The case is US v. Zhao, 23-cr-00179, US District Court, Western District of Washington (Seattle).