Binance Co-Founder Says CZ is in a ‘Positive Situation’

Former Binance CEO Changpeng Zhao, also known as CZ in the digital asset space, is facing sentencing in the United States on one felony charge on April 30. 

However, the cryptocurrency exchange’s co-founder, He Yi, remains optimistic about CZ’s situation, suggesting that it is largely peaceful and that past regulatory pressures were anticipated internally.

Binance has been undergoing a lot of changes. As reported earlier by TheCoinRise, the exchange announced the formation of a new Board of Directors, led by Gabriel Abed, former ambassador of Barbados to the United Arab Emirates (UAE).

Binance Co-Founder Addresses Concerns

Yi addressed concerns over Binance’s regulatory status during the Binance Chinese Meetup held on the sidelines of the Token2049 conference in Dubai. 

While Yi’s comments were not directly quoted in the company’s newsfeed, it was conveyed that she believes CZ’s current standing in the US is the most optimal outcome given the circumstances.

“CZ’s current standing in the US is largely peaceful and past regulatory pressures have been internally anticipated. She believes the existing situation to be the most optimal outcome given the circumstances.”

Prison Term

The felony charge against CZ could potentially lead to a prison term of up to 10 years, although the recommended sentence in the guidelines is 12 to 18 months. 

This charge stemmed from a settlement reached in November, which also required Binance to forfeit $4.3 billion and resulted in CZ’s resignation as CEO.

Travel Restrictions on CZ

Despite facing sentencing, CZ is currently free in the United States on a $175-million bond, albeit with travel restrictions. He has sought permission to travel to Dubai, where he resides, due to a medical situation involving one of his children. 

However, the US Attorney’s Office has attempted to seize his passports. CZ holds Canadian citizenship and is also a citizen of the United Arab Emirates.

He Yi, who is the mother of at least two of CZ’s three children, maintains an undisclosed stake in Binance but denies being romantically involved with CZ at present.

Binance Distances Itself from CZ

Since CZ’s resignation as CEO, Binance has been distancing itself from him. Richard Teng, the former Binance head of regional markets outside the United States, has taken over as CEO, emphasizing that Binance is now under different leadership. 

In recent developments, reports suggest that Binance has obtained a Virtual Asset Service Provider (VASP) license in Dubai. As part of this licensing agreement, CZ was reportedly required to relinquish his voting rights in the local entity, Binance FZE, although the exchange has not officially commented on this claim.