Post
Topic
Board Bitcoin Discussion
Re: Largest crypto exchange CEO arrested! Anyone getting deja vu?
by
Odohu
on 22/11/2023, 01:45:28 UTC
So as you all know they charged CZ and he stepped down. Most likely he will get arrested as he goes on US soil.

from what i read he was charged a week ago and made a deal to plead in exchange for a cash settlement(punishment) to avoid jail/prison/extradition

a whopping $4.3billion penalty for binance and $50m for CZ personally

CZ had to pay his $50m today

binance has to pay(of the $4.3b):
$1.8Bill within 15 months  (overall fine for crimes)
$1.6bill within 6 months (forfeiture of profits/fee's of running the business)
$0.9bill within 30days (clawback of funds sent to IRAN)

it only became unsealed and newsworthy today
(last weeks charges filing)
https://storage.courtlistener.com/recap/gov.uscourts.wawd.328551/gov.uscourts.wawd.328551.1.0.pdf

(motion to unseal)
https://storage.courtlistener.com/recap/gov.uscourts.wawd.328551/gov.uscourts.wawd.328551.7.0.pdf

(yesterdays motions to plea)
https://storage.courtlistener.com/recap/gov.uscourts.wawd.328551/gov.uscourts.wawd.328551.9.0.pdf


CZ's "crimes"
1. operating a money transmitter service
2. not registering a money transmitter service
3. facilitating money transmits to iran

binance "crime"
Thanks for this details. This make more sense now. Iran have always been blacklisted by most financial system probably the reason CZ followed the backdoor of rendering service to Iran through an unregistered  transmitter service. It is politics after all and CZ allowed himself to get involved.

I will call it a bad business decision by CZ and Binance considering the fact that they have always been on the US radar for long. Exposing himself and the business he lead to the US government might not end well for him since the US still controls a lot of things.

My major concern is how this will affect the entire cryptocurrency market because Binance is a leading figure in this space. Secondly, CZ stepping aside might lead to some form of risk in the future and I will advice everyone to be careful on the amount of funds kept in Binance for now.