©Reuters
Former CEO of cryptocurrency exchange Binance, Changpeng Zhao, is currently under house arrest in the United States following a ruling by a federal judge on Monday. Federal Judge Richard Jones ordered Zhao to remain in the country and set his bail at a substantial $175 million. The move follows Zhao’s admission of violating anti-money laundering laws.
Binance itself faced significant legal repercussions and was fined a hefty $4.3 billion for failing to comply with anti-money laundering and sanctions laws. Mr. Zhao admitted his role in these regulatory failures and subsequently resigned from his position as head of the world’s largest cryptocurrency exchange by trading volume.
The legal proceedings against Mr. Zhao are part of a broad crackdown targeting cryptocurrency exchanges that do not comply with international regulations. Zhao’s sentencing is scheduled for February 23, which will likely be a closely watched event by the crypto community and regulators. The outcome of this case could have far-reaching implications for the cryptocurrency industry, which has come under increased scrutiny in recent years.
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