Binance founder Changpeng Zhao has been recommended a three-year prison sentence by federal prosecutors for violating federal money laundering laws and sanctions. The Department of Justice argued that this sentence would hold him accountable for his intentional criminal conduct and send a message to the world. Zhao made a "business decision" to break the law to attract users, build his company, and line his pockets, according to prosecutors. Along with the prison sentence, DOJ lawyers also requested that Zhao pay the $50 million fine he agreed to as part of a plea deal. Zhao, who is a citizen of the UAE and Canada, has been released on a $175 million bond but must remain in the U.S. until his sentencing on April 30.

Changpeng Zhao, the former CEO of Binance, will remain in the United States until his sentencing, according to a court filing. Despite appeals from his legal team, the US District Court for the Western District of Washington at Seattle has refused to allow him to return to the United Arab Emirates, where he claims to have family ties. As part of his bail conditions, Zhao is required to submit his Canadian passport to a third-party custodian and is not permitted to apply for a new passport until after his sentencing. The custodian must accompany him on any travel requiring identification documents and is not authorized to release the passport to Zhao without permission from the court or Pretrial Services.

Changpeng Zhao, the co-founder and former CEO of Binance, attempted to pledge his $4.5 billion stake in the cryptocurrency exchange in exchange for permission to temporarily travel to the United Arab Emirates (UAE) for a surgical operation of a close friend or family member. However, the court denied his request in a closed hearing in December, citing flight and failure to appear risks. Zhao and Binance pleaded guilty to money laundering in November 2023, resulting in a fine of $4.3 billion for the platform and a $50 million payment and resignation from the CEO position for Zhao. A lawsuit filed by investors accuses Binance of violating federal and local laws, unfair competition, and attempting to monopolize the cryptocurrency market.

Binance founder Zhao Changpeng's net worth increased by $25 billion in 2023, according to Bloomberg's Billionaires Index, while Coinbase Global Inc. CEO Brian Armstrong's wealth has increased by $5.8 billion to $7.2 billion so far this year. Coinbase's stock price has risen nearly 400% so far this year, and Armstrong is estimated to own about 16% of the company. Coinbase co-founder Fred Ehrsam's wealth is estimated to increase by $1.8 billion to about $2.5 billion in 2023. Ehrsam is estimated to own about 5% of Coinbase. In addition, Gemini Exchange founders Tyler Winklevoss and Cameron Winklevoss's wealth has increased by $1.4 billion to $2.7 billion. DCG founder Barry Silbert's wealth has increased by $1.5 billion this year, estimated to reach $2 billion.

Former Binance CEO Changpeng Zhao is expected to face prison time after pleading guilty to failing to maintain adequate anti-money laundering protocols for the world's largest crypto exchange, according to CFTC Chair Rostin Behnam. The CFTC, Justice Department, and Treasury have imposed over $4 billion in fines on the criminal and civil side. Zhao, a citizen of two other nations, has been ruled to stay in the US until his sentencing in February 2022, as he poses a serious risk of flight. The government argues that Zhao has minimal ties to the US and a residence in a country without an extradition treaty with the US.

Court documents from the Western District of Washington federal court in the United States show that Changpeng Zhao may face a sentence of up to 18 months to ten years for his involvement in criminal activities. Despite being a billionaire and living in the United Arab Emirates, which does not extradite its citizens, he voluntarily went to the United States to stand trial. The government recommended bail before sentencing, but believed he still posed a flight risk and needed to be restricted during his stay in the United States to prevent him from returning to the United Arab Emirates. The government pointed out that Changpeng Zhao had no connection to the United States, and that his family and wealth were in the United Arab Emirates, so he had a motive to evade US law. The government requested that the court require Changpeng Zhao to stay in the United States during the period between his guilty plea and sentencing.

Changpeng Zhao, the founder of Binance and former CEO, has stated that he is mentally stable despite recent legal issues. He expressed gratitude for the support he has received from the public and Binance users, although he has not been able to respond to most of them. Zhao has joked in the past about retiring early as Binance CEO, but did not expect it to happen so soon or in this manner. He has been hit with legal enforcement action related to money laundering and Know-Your-Customer rules, and has pleaded guilty to charges of defaulting on anti-money laundering systems. He is currently on a $175 million personal recognizance bond and is prohibited from breaking the law or traveling out of the country until his sentence hearing in February.

Blockchain analytics company Nansen has reported that despite a settlement for civil and criminal charges against Binance and its CEO, Changpeng “CZ” Zhao, there has not been a significant outflow of funds from the exchange. Nansen stated that while there was a $956 million net outflow on Ethereum within 24 hours of the $4.3 billion settlement announcement by the US Department of Justice, Binance's total holdings increased to over $65 billion. Nansen also noted that withdrawals are continuing, and there has not been a mass exodus of funds. Tether (USDT) holdings on Binance decreased the most over the last 24 hours, while holdings of XRP and TrueUSD (TUSD) remained steady.

Data firm Nansen has reported that investors withdrew approximately $956 million from Binance within the past 24 hours, following the resignation of the exchange's chief, Changpeng Zhao, who pleaded guilty to violating US anti-money laundering laws. Binance has agreed to pay $4.3 billion to US authorities to settle a long-standing illicit finance investigation, which has raised concerns about the future of the world's largest crypto exchange. While Zhao has been replaced by Richard Teng, a senior Binance executive, the news has still unsettled some customers of the exchange, although the outflows are relatively small compared to the platform's total holdings.

According to WhaleWire, Zhao Changpeng has just been granted bail with a bail amount of 175 million US dollars, which is one of the largest bail amounts in history.