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Changpeng Zhao released on $175 million bail

The founder and former head of the largest cryptocurrency exchange Binance, Changpeng Zhao, was released on bail of $175 million, secured by depositing $15 million into a special account and two personal guarantees, reports RBC Crypto with reference to CoinDesk.

According to the court decision, the entrepreneur can leave the US territory and return to the UAE, but must appear in court in Seattle 14 days before the sentencing, the date of which is set for February 23, 2024. If these conditions are violated, the maximum penalty is up to ten years in prison.

Last night, Changpeng Zhao resigned as head of the Binance exchange and also pleaded guilty to violating the Bank Secrecy Act. The exchange itself faces three criminal charges, including operating an unlicensed financial business, conspiracy and violating the Emergency Financial Powers Act.

The text of the accusation against Binance takes up 30 pages, including the lack of measures to counter the financing of terrorism and drug trafficking, as well as violation of American sanctions, including servicing clients from Crimea, DPR and LPR.

As part of the deal aimed at resolving US authorities’ charges against Binance, Zhao will personally pay a fine of $50 million and retain a controlling stake, but will not be able to hold management positions or make public statements on behalf of the exchange. The exchange will pay several fines totaling $4.3 billion.

Richard Teng, who was previously responsible for all regional markets outside the United States, has been appointed as the new head of Binance.

Source: Cryptocurrency

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