U.S. prosecutors are actively seeking to compel Changpeng Zhao, the founder and former chief of Binance Holdings, to remain within the continental United States until his sentencing, scheduled for February 23, 2024. In a court filing dated November 22, the Department of Justice [DoJ] underscored the urgency of imposing constraints on Zhao’s movements, urging him to refrain from returning to the United Arab Emirates before the designated sentencing date.
As reported by Reuters, the impetus behind this request lies in Zhao’s admission of guilt, wherein he acknowledged violating U.S. laws pertaining to the prevention of money laundering. The plea from U.S. prosecutors highlights their apprehension regarding Zhao’s potential departure from the country before his sentencing, recognizing that such a move could introduce complications in legal proceedings and the enforcement of penalties. The gravity of Zhao’s guilty plea, particularly in connection with money laundering violations, has prompted authorities to take precautionary measures to ensure Zhao’s presence and adherence to the legal process.
Following Changpeng Zhao’s resignation as CEO, Richard Teng assumed the position as his successor. Teng, the former CEO of Abu Dhabi Global Market and a prominent financial services regulator in the UAE capital, sparked mixed reactions on crypto twitter. Some users raised concerns about Teng’s association with the World Economic Forum, implying that he is a puppet of the legacy financial institutions.
Binance New CEO Responds To Critics
Amidst the leadership transition, Binance experienced a substantial outflow of funds, causing apprehension among investors and traders. Data from DefiLlama revealed a staggering $1 billion withdrawal from the exchange within the past 24 hours. Critics pointed to distrust fueled by discrepancies in Binance’s previously shared proof of reserves [PoR].
To address concerns and boost investor confidence, Richard Teng took to X [formerly Twitter], emphasizing the robust fundamentals of Binance’s business. He reiterated that the crypto exchange generates strong revenues and profits despite low platform fees. In his introductory X post as Binance’s new CEO, Teng outlined his focus on three key aspects: restoring investor confidence, collaborating with regulators, and driving the adoption of Web3.