© Reuters
Former CEO of cryptocurrency exchange Binance, Changpeng Zhao, is currently under house arrest in the United States following a federal judge’s ruling on Monday. Judge Richard Jones ordered that Zhao must remain in the country, setting his bail at a substantial $175 million. The decision was made after Zhao admitted to violating anti-money laundering laws.
Binance itself has faced significant legal consequences, being fined a hefty $4.3 billion for failing to comply with anti-money laundering and sanctions laws. Zhao admitted his role in these regulatory oversights and subsequently resigned from his position at the helm of the world’s largest cryptocurrency exchange by trading volume.
The legal proceedings against Zhao are part of a broader crackdown on cryptocurrency exchanges that do not comply with international regulations. Zhao’s sentencing is scheduled for February 23, which is likely to be a closely watched event by the crypto community and regulators. The results could have far-reaching implications for the cryptocurrency industry, which has come under increasing scrutiny in recent years.
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