Bitrabo Editorial
Changpeng Zhao, better known as “CZ”, has hinted at the possibility of leaving the United States after finishing a four-month prison sentence due to a settlement with US authorities. He was released from incarceration on September 27, slightly ahead of the expected date.
CZ Plans Trip to Dubai
In November 2023, Zhao admitted guilt for not enforcing anti-money laundering (AML) practices at Binance during his tenure. As part of a corporate agreement, Binance had to pay a hefty sum of $4.3 billion, and Zhao received a personal fine of $50 million.
Following the settlement, a court order restricted Zhao’s travel, confiscating his passport and limiting his movements outside the US, which interfered with his plans to visit family in Dubai prior to his court date.
Recently, though, Zhao made an announcement on X (formerly Twitter), sharing that he intends to attend the Binance Blockchain Week in Dubai on October 30-31, hinting at an easing of his travel restrictions. He stated:
I will be attending the Binance Blockchain Week in Dubai on Oct 30-31, in my personal capacity. It’s one of the biggest web3 events of the year. See you there.
His mention of this event implies that he might now be free to leave the US and return to Dubai, a growing center for cryptocurrency activities and conferences, where he resides.
Binance’s Evolution Post CZ’s Sentencing
Under the terms of his agreement with the US Department of Justice (DOJ), Zhao has stepped down as CEO and cannot assume any future executive roles at Binance.
In his place, Richard Teng, formerly a chief regulator at the Abu Dhabi Global Market, has taken the helm as CEO, focusing on enhancing compliance measures and restoring the company’s reputation amid increased scrutiny faced over the past year.
Teng’s strategy includes forming the first seven-member board of directors after the legal troubles and planning for a global headquarters.
The repercussions of Zhao’s legal issues have impacted Binance’s operations, coinciding with broader market fluctuations and increased volatility in prices for cryptocurrencies like Bitcoin (BTC) and Binance’s own token, BNB.
According to NewsBTC, Binance’s share of the trading volume in the $2 trillion digital asset market dropped to 36.6% in September, a significant downturn from 42.7% at the beginning of the year, marking a four-year low.
This decline is especially notable in cash and derivatives trading. The exchange’s 27% share in the spot market is the lowest since January 2021, while its derivatives trading share stands at 40.7%, the weakest in four years.
Currently, BNB is trading at $563, experiencing a 3% decline in the past 24 hours, having ended September at $618, which was its highest point since June.
Featured image from DALL-E, chart from TradingView.com