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CZ’s four-month sentence for violating Bank Secrecy Act is about to end.
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CZ Binance and other investors are facing new lawsuits relating to fund security and laundering.
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Binance has paid $4.3 billion to settle legal issues, and CZ has resigned as CEO.
Changpeng Zhao, the founder of Binance (CZ), may be nearing his four-month jail sentence for violating Bank Secrecy Act.
According to the U.S. Federal Bureau of Prisons’ website, a 47 year-old Asian named “CHANGPENG ZHAO”, with the registration number of 88087-501, will be released in 2024. This news hasn’t had a significant impact on BNB yet, but it has attracted attention because Zhao faces new legal challenges.
Zhao was found guilty of violating the Bank Secrecy (BSA) Act due to Binance failing to implement adequate Know-Your-Customer (KYC). CZ, who reported to a California federal prison earlier this year, was given a sentence that was shorter than the three-year sentence the federal prosecutors originally sought.
In April, he was sentenced to a four-month jail term and fined $50 million. In the settlement, he resigned as CEO of Binance. Binance itself pleaded to related charges of money-laundering and sanctions violations. It paid $4.3 billion in fines.
Read also: Changpeng Zhao’s Release Date: The Truth behind the Rumors
Social media reported Zhao’s release two weeks ago. A Protos update clarified, however, that Zhao was still in custody. According to the report he was transferred to a Long Beach halfway house from FCI Lompoc II, California, which is a common step for prisoners nearing the end their sentences. This transition is meant to help with reintegration, but does not mark his completion of sentence.
New legal challenges for Binance and Zhao
As Zhao nears the end of his prison sentence, new legal challenges are emerging. Three crypto investors filed a suit against Zhao and Binance in mid-August accusing them of security complacency that led to the laundering of stolen money through the exchange. Plaintiffs claim that these lapses compromised security of user funds and added further pressure to Binance founder Zhao.
Read Binance CEO’s Reveal of CZ’s Lifetime Banned: A Major Loss
As he prepares for his reintegration following his release, the public’s attention will be shaped by his legal issues and his role on the global cryptocurrency market.
This recent development has not yet affected BNB’s current market trend. BNB is currently trading at $ 546.41, a drop of 2.71% within the day.
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