TronWeekly

Crypto World News

You are here: Home / Archives for Changpeng Zhao

Changpeng Zhao

Binance Changpeng Zhao’s Release Delayed: New Date Set for Sep 29

by

In a recent twist concerning Binance founder Changpeng Zhao, commonly known as CZ, it appears the excitement among some of his supporters about his impending release from federal prison was premature.

Contrary to earlier assumptions, CZ will not be leaving Federal Correctional Institution Lompoc II on August 30, as some had speculated. His actual release date is set for September 29, extending his stay in the low-security facility situated about three hours north of Los Angeles, according to reports.

The Misunderstanding of Binance CZ’s Release

The confusion began when fans on X (formerly known as Twitter) celebrated the notion that CZ would complete his sentence by the end of August. This misunderstanding stemmed from the timing of his sentence and the assumption that he had begun serving his term immediately.

However, CZ’s legal team, comprising renowned firms such as Quinn Emanuel Urquhart & Sullivan, Davis Wright Tremaine, and Latham & Watkins, negotiated a delayed start to his incarceration. As a result, the actual commencement of his prison term was pushed back, altering his release schedule accordingly.

Binance CZ was sentenced by U.S. District Judge Richard Jones on April 30 to a four-month term, with a recommendation for incarceration at Seatac, a federal detention center in Seattle. Yet, CZ did not enter Seatac right away.

Instead, he was placed in Federal Correctional Institution Lompoc II, an adjustment made in late May following negotiations between his legal representatives and various court officials. This move significantly impacted the projected timeline of his release.

The U.S. Constitution’s Fifth Amendment, guaranteeing due process, played a role in the anomalies of CZ’s sentence, including the timing of his incarceration and the specific facility chosen.

Despite this, some in the crypto community expressed their support for Zhao, viewing his legal challenges as part of a broader narrative of accountability within the crypto industry. A Reddit user even suggested that Zhao’s compliance with legal proceedings was a protective measure for Binance, considering the tumultuous past of other major crypto entities.

Upon his eventual release, Binance CZ plans to re-engage with the cryptocurrency sector. He intends to continue managing his cryptocurrency assets and pursue passive investing. Zhao sees this period as a transition to a new chapter in the industry, emphasizing the importance of adhering to regulatory standards.

Related Reading | Bitcoin Holds Strong at $64k Support: Analyst Predicts Potential Breakout

Binance Coin (BNB) Shows Remarkable Stability: Analyst Predicts BNB to Break All-Time High

by

Binance Coin (BNB) has maintained strong performance despite facing significant market turbulence and ongoing challenges for its parent company, Binance. The cryptocurrency market has been volatile, and Binance itself has encountered multiple legal and regulatory hurdles across various countries.

Binance is currently embroiled in several lawsuits and has faced substantial regulatory pushback globally. A notable recent development includes Binance CEO Changpeng Zhao (CZ) stepping down from his position. Additionally, the U.S. Securities and Exchange Commission (SEC) imposed a hefty $4.3 billion fine on Binance, marking one of the major setbacks for the company.

Despite these formidable obstacles, Binance Coin (BNB) has shown remarkable stability. The coin has not only avoided a downturn but has also demonstrated resilience in the market. From March 11th to May 28th, BNB has traded consistently within the range of $500 to $650. This stability is now setting the stage for a potential bullish breakout.

As of the latest data, the price of Binance Coin stands at $604.36, with a 24-hour trading volume of $1.24 billion and a market capitalization of $89.19 billion. Over the past 24 hours, the BNB price has seen a modest increase of 0.57%, reflecting investor confidence in the coin’s strength and potential for future gains.

BNB 1D graph coinmarketcap 4

BNB Set to Break All time-High, Says Analyst 

In a recent analysis, prominent crypto analyst Crypto Scient expressed an optimistic outlook on the price trajectory of Binance Coin. Despite the pervasive fear, uncertainty, and doubt (FUD) and the overall bearish sentiment that dominated the market last year, BNB stood out as a high-liquidity altcoin with virtually no drawdowns, making it a reliable asset to hold.

Crypto Scient pointed out the resiliency and stability of BNB’s performance throughout the market turbulence. He further said that such steady liquidity, and no significant price droop, were making it a standard choice for investors. Furthermore, Crypto Scient pointed to the emergence of various coins on the Binance Launchpad and Launchpool as a positive indicator for BNB’s future performance. 

He added that this wave of success and popularity that these new projects are having can drive a bullish trend of BNB, which may lead it to break its all-time high (ATH) and exchange all the way to highs. To support his forecast, Crypto Scient has used Fibonacci retracement levels as potential targets for the price discovery of BNB.

image 35 4

Related Reading |  Ethereum’s Price Soars 4% to $3,916 Amid Approval of Spot ETFs

CZ’s Past 3 Bitcoin Halvings Revelation: BTC Price Surge

by

Changpeng Zhao (CZ), the founder and former chief executive of Binance, recently took to Twitter to shed light on the looming Bitcoin halving, a pivotal event in the cryptocurrency world. As the countdown to the halving draws nearer, CZ’s insights offer valuable perspectives for crypto enthusiasts and investors alike.

In a Twitter post, CZ revisited his earlier remarks made in October last year, where he hinted at Binance adding a dedicated page on BTC halving and shared his reflections on the event. Drawing from his experience with previous halvings, CZ highlighted a notable trend, a year following the halving, BTC prices tend to embark on an upward trajectory, albeit not doubling overnight. This observation underscores the significance of the halving in shaping BTC’s market dynamics.

GLgDhCkagAAFzbc
Source

Responding to a query from a follower about whether Bitcoin halving resembles a stock split, CZ promptly dispelled the notion, emphasizing the unique nature of the halving mechanism. This interaction underscores the ongoing education and awareness efforts needed within the crypto community, as misconceptions persist around fundamental concepts like the halving.

Here’s How Bitcoin Halving Impacts Market Dynamics

The anticipation surrounding the halving extends beyond CZ’s insights, with industry experts like Samson Mow and Anthony Pompliano attributing it as a catalyst for the anticipated surge in Bitcoin prices. The halving, which slashes the block reward and consequently reduces the supply of new BTCs, is poised to trigger a supply shock in the market. This tightening of supply coincides with a demand surge fueled by the approval of spot Bitcoin ETFs, resulting in a convergence of supply and demand dynamics.

Samson Mow’s recent tweet alluded to the formation of an “Omega candle” post-halving, a phenomenon speculated to propel Bitcoin’s price to unprecedented heights, potentially reaching $1 million. The concept of the Omega candle encapsulates the culmination of supply and demand shocks, symbolizing a transformative moment in Bitcoin’s price trajectory.

At the time of writing, Bitcoin is trading at $64,621, showcasing the market’s response to the unfolding events surrounding the halving. As the cryptocurrency community braces for the imminent halving, CZ’s insights serve as a beacon, illuminating the path forward amidst the evolving landscape of digital assets.

Binance Founder CZ’s Sentencing Postponed Amidst Regulatory Storm

by

The federal court in Seattle has delayed judgment on the pending sentencing related to charges of violating money-laundering rules for the founder of Binance, Changpeng Zhao. The sentencing was supposed to happen earlier, and the sudden change of plans has raised much speculation about the real reasons for this postponement. 

CZ, widely known as the face of Binance, earlier pleaded guilty to the charge of failure to have an effective anti-money laundering program at the exchange giant. This involved his stepping down as CEO and paying a fine of $50 million as part of the plea deal. In addition to this, the company itself agreed to a huge settlement of $4.3 billion, including fines and restitution.

Even though he is out on a significant $175 million release bond in the United States, his recent request to travel to the UAE was denied over concerns of potential flight risk—even when offering equity in Binance as collateral. The docket entry, which did not explain why the sentencing was postponed for two months, was reported by CNBC. When reached for comment, the lawyer, William Burck, declined to do so.

While federal sentencing guidelines suggest a maximum of 18 months in prison for CZ, there are rumours that prosecutors could be gunning for an even stiffer penalty. This throws into uncertainty not only CZ’s future but that of Binance.

Binance Bolsters Compliance Measures

Despite these entanglements with regulation, Binance has shown to be increasing its resilience, with spending on compliance very strongly on the rise. As reported by Tronweekly, the volume of the budget for strengthening business lines in that area has been adjusted from $158 million to $213 million by an incredible 35%. This investment reinforces Binance’s commitment towards further consolidation of its compliance infrastructural position and cleaning up the illicit activities within its ecosystem.

CoinGecko also added that Binance continues to lead in the centralized exchange space. Despite regulatory headwinds affecting the level of activity of the company, Binance still continues to hold its title as the largest centralized exchange (CEX) and stands at 43.7% for the market. Remarkably, the trading volume of spot trading hit $427.1 billion in December 2023, increasing 37.5% on a monthly basis.

image 52

Binance Bolsters Compliance Efforts With A 35% Budget Surge: Report

by

Binance, the world’s largest crypto exchange, has revealed a substantial year-over-year increase in its spending on compliance measures, according to a recent report. The company has escalated its budget from $158 million to $213 million, signaling a 35% surge, as it invests in cutting-edge software systems designed to identify and report suspicious transactions.

This move comes as Binance braces for the monitoring process and the impending sentencing of its former CEO, Changpeng Zhao. The increased compliance expenditure encompasses not only the acquisition of advanced software but also includes personnel costs. Notably, the exchange has brought back executive Steve Christie, appointing him as Deputy Chief Compliance Officer.

image 4

Binance’s CEO, Richard Teng, emphasized the transformation of their compliance culture, attributing the progress to the caliber of talent within the organization. Teng, who assumed the CEO role in November, is a former regulator, steering the company towards a more robust compliance framework.

This strategic focus on compliance marks a significant shift for Binance, considering its earlier laissez-faire approach that contributed to its dominance in the industry. Last year, the exchange reached a settlement with U.S. authorities, ending various investigations.

As part of the settlement terms, the exchange is obliged to accept a court-appointed monitor. The monitor, yet to be officially appointed, will ensure adherence to terms stipulated by the Department of Justice, the Financial Crimes Enforcement Network, and the Office of Foreign Assets Control – all divisions of the U.S. Treasury.

Binance Financial Resilience Amidst Challenges

The impending monitor appointment is expected to curb any questionable tactics that may have contributed to Binance’s market share growth in the past. Despite these challenges, the exchange reported impressive financial figures for January, pulling in over $3.5 billion in new funds and boasting total assets on the platform exceeding $80 billion.

Steve Christie, the returning executive, expressed confidence in the exchange’s strengthened compliance culture. He highlighted the unparalleled technological arsenal at the company’s disposal for compliance, due diligence, and transaction monitoring. Christie’s return to Binance follows a personal break with his family.

Christie said:

The amount of tech Binance has for compliance, due diligence, and transaction monitoring is unparalleled. There’s more tech at your fingertips than anywhere I’ve worked.

However, Binance seems poised to navigate the challenges ahead as the crypto industry undergoes regulatory transformations, bolstered by increased compliance measures and a strong leadership team.

Related Reading | Moonshot For Dogecoin: 86% Spike in New Users

Binance Ex-CEO Denied Travel Permission Again Amidst Legal Turmoil

by

The former CEO of Binance, Changpeng Zhao, finds himself trapped in legal complexities as the U.S. District Court for the Western District of Washington in Seattle denied his recent “request for permission to travel.” This setback comes as Zhao awaits sentencing for undisclosed criminal charges, with the court expressing concerns over the possibility that he may flee the country.

This denial marks the second time the court has restricted Zhao’s movements. Last month, Judge Richard Jones imposed conditions preventing Zhao from returning to his home in the United Arab Emirates until the court resolves the government’s motion for review. Prosecutors argue that Zhao, with his considerable wealth, poses a significant flight risk, emphasizing the lack of an extradition treaty between the U.S. and the UAE.

A few days ago, attempting to gain more discretion in his travel plans, Zhao filed a request on December 27 to keep parts of his travel intentions private. While Zhao has long sought permission to travel outside the U.S., recent court filings shed light on the intricacies of his plans.

The first filing reveals that Zhao’s defense team has moved to seal various documents about his travel, citing the inclusion of private and sensitive medical information concerning one of Zhao’s children. The second document proposes an order through which Judge Richard Jones could grant Zhao’s request to keep this information confidential.

Binance’s Zhao Financial Fortunes Surge

Amid these legal challenges, Changpeng Zhao’s financial fortunes seem to be moving in the opposite direction. Despite facing potential legal ramifications, Zhao’s wealth has reportedly surged by an astounding $25 billion in 2023. According to the Bloomberg Billionaires Index, as of December 25, Zhao’s net worth now stands at a staggering $36.2 billion, marking a year-to-date increase of $23.6 billion.

image 116 1

This significant boost in wealth has propelled Zhao to the 35th position on the Bloomberg Billionaires Index, surpassing influential figures like Citadel CEO Ken Griffin and trailing only behind Uniqlo CEO Tadashi Yanai.

The juxtaposition of his mounting fortune against the backdrop of legal uncertainties adds a layer of complexity to the saga surrounding Binance’s former CEO Changpeng Zhao, leaving both the financial and legal worlds eagerly awaiting the unfolding of events as his sentencing approaches in late February.

Related Reading | Binance 2023: A Year Of Surging Users & $213M In Compliance

Binance 2023: A Year Of Surging Users & $213M In Compliance

by

As the curtains draw on 2023, Binance, one of the cryptocurrency industry’s giants, released its annual report, revealing remarkable achievements and strategic pivots that shaped its trajectory throughout the year. With a 40 million new users surge, the platform now boasts a staggering 170 million registered users, signaling a robust 30% increase since the previous year.

In a tumultuous year for the crypto market, the exchange stood resilient, navigating through market fluctuations and tightening regulations across various jurisdictions. The report highlights the company’s commitment to compliance, disclosing an impressive $213 million investment in its compliance program—an increase of 35% compared to the previous year’s spending.

image 114

The compliance initiative is not merely about monetary investments. Binance has dedicated substantial product and engineering resources to fortify its compliance framework. The company introduced its proprietary case management system, an internal transaction monitoring engine, and in-house tools designed to semi-automate investigations. Enhanced market surveillance controls, particularly around wash or circular trading, have been implemented across Binance’s trading platforms, including the NFT marketplace, ensuring fairness for all participants.

Binance’s compliance efforts extend globally, with licenses, registrations, and authorizations secured in 18 jurisdictions—a testament to its commitment to meeting the highest regulatory standards. The company has invested in top-tier localized KYC vendors and product solutions to create a seamless onboarding experience for users worldwide. To enhance user experience, Binance supported 298 new ID and proof-of-address documents across 64 countries in the past year alone.

image 115

Binance’s Leadership Shift

Meanwhile, the exchange underwent a comprehensive third-party assessment, culminating in completing the System and Organization Controls (SOC) 2 Type II compliance audit in December 2023. Earlier in the year, the platform received ISO 27001 and ISO 27701 certifications for information security governance and privacy information management in four jurisdictions.

A pivotal moment in Binance’s history unfolded with the resignation of co-founder and former CEO Changpeng Zhao (CZ). Richard Teng, a seasoned financial regulator and business executive, succeeded CZ, marking the start of a new chapter. In response to regulatory scrutiny, the exchange has agreed to hire an independent anti-money laundering consultant and will undergo a multi-year financial monitorship.

The report underscores Binance’s unwavering dedication to user trust and financial transparency. With a robust compliance program, strategic investments in cutting-edge technologies like zero-knowledge proof cryptography, and a focus on Web3 games and DeFi innovation, Binance is poised for continued success in the dynamic world of cryptocurrency.

Related Reading | Indonesia Tightens Grip, Crypto Exchanges Face Registration Deadline: Report

Binance Ex-Founder CZ Defies Legal Turmoil, Tops Crypto Moguls In 2023

by

Binance founder Changpeng “CZ” Zhao has witnessed a staggering surge in wealth despite his recent guilty plea to U.S. criminal charges and subsequent resignation as the CEO of the cryptocurrency exchange. The Bloomberg Billionaires Index reported that Zhao’s estimated wealth ballooned by over $23 billion in the year 2023, positioning him as a top gainer among crypto entrepreneurs.

image 96

Binance’s Zhao Outshines Armstrong & Winklevoss In 2023 Gains

According to the report, the windfall comes at the close of a year marked by Bitcoin’s remarkable 160% rebound following the market collapse of 2022. Zhao now stands atop a list of cryptocurrency magnates, overshadowing even Coinbase Global Inc. CEO Brian Armstrong and the Winklevoss twins, whose fortunes also experienced substantial rebounds.

Campbell Harvey, a finance professor at Duke University specializing in digital-asset markets, emphasized the volatile nature of crypto investments, noting that successful investors weather the spectacular ups and downs by focusing on long-term opportunities.

Despite Zhao’s impending legal troubles, including a guilty plea for anti-money laundering and U.S. sanctions violations, his fortune has surged to over $37 billion. This increase is more than five times the size of the $4.3 billion in fines that Binance agreed to pay U.S. authorities, demonstrating the resilience of the crypto exchange.

Zhao, who owns a controlling stake in Binance and holds some Bitcoin and BNB, faces a potential prison sentence of up to 10 years. However, a plea deal may limit his time behind bars to no more than 18 months. Zhao’s sentencing is scheduled for February 23, and despite his current wealth, it remains far below its peak of nearly $97 billion in early 2022.

Other notable crypto winners in 2023 include Coinbase CEO Brian Armstrong, whose wealth increased by $5.8 billion, and Coinbase co-founder Fred Ehrsam, whose estimated wealth swelled by $1.8 billion. The Winklevoss twins, founders of the Gemini Trust crypto exchange, saw their wealth balloon by $1.4 billion each. However, these entrepreneurs navigate legal challenges and regulatory scrutiny. Though subject to fluctuations, their fortunes reflect the resilience and dynamism of the cryptocurrency landscape.

Related Reading | Tether’s CTO Unveils Ambitious Plan For 2024

Binance’s Turbulent Year: Declining Market Share & Regulatory Headwinds

by

Binance, the world’s leading cryptocurrency exchange by market volume, has experienced a significant decline in its spot market share. The company, helmed by founder and CEO Changpeng “CZ” Zhao, faced a series of regulatory challenges that ultimately led to substantial legal settlements and a shake-up in its leadership.

According to data provided by CCData, Binance’s spot market share in December stands at 30.1%, a stark contrast to the 55% it held at the beginning of the year. The decline is part of a larger trend, with monthly spot volumes plummeting by over 70% from $474 billion in January to $114 billion in September. Despite this, Binance has seen a resurgence in monthly trading volumes since September, even as its market share continued to slide.

image 40 6
Binance's Turbulent Year: Declining Market Share & Regulatory Headwinds 11

Binance Faces Setbacks & $4 Billion Settlement

The pivotal moment for Binance came in November when the company, along with its now-former CEO CZ, agreed to a substantial settlement of nearly $4 billion to resolve a lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC). Separate settlements with the U.S. Department of Justice and the Treasury Department accompanied this agreement.

The regulatory challenges were not the only obstacles faced by Binance, as the company witnessed a wave of executive departures throughout the year. Key figures, including Chief Strategy Officer Patrick Hillmann, Senior Director of Investigations Matthew Price, and U.K. Chief Jonathan Farnell, parted ways with the cryptocurrency giant.

Despite the decline in spot trading market share, Binance remains the largest cryptocurrency exchange by a considerable margin. Currently holding 30% of the market, Binance’s closest competitor is Seychelles-based OKX, which has seen its market share grow from around 4% at the start of the year to 8% in December, according to CCData.

However, the trend is consistent when examining combined spot and derivatives trading. Binance’s market share in this category dropped to 42% from 60%, while OKX experienced a notable increase from 9% to 21%.

As the exchange navigates the challenges posed by regulatory scrutiny and internal changes, the cryptocurrency industry watches closely to see how the exchange will adapt and whether it can regain lost ground in the competitive market.

Related Reading | FTX Fights Back Against IRS’s $24 Billion Tax Claim

Binance Former CEO CZ In Spotlight: Shkreli’s Take On Jail, Plea Deals, and Probation

by

Martin Shkreli, notorious as ‘Pharma Bro’ for his ties to pharmaceutical companies, has weighed in on the predicament of former Binance CEO Changpeng “CZ” Zhao. Shkreli, serving a seven-year sentence for securities fraud and conspiracy charges, shared insights into the potential fate awaiting CZ, who faces up to 18 months in prison under federal sentencing guidelines.

Shkreli, no stranger to jail himself, casually remarked that “jail ain’t so bad” and speculated on CZ’s potential plea deal terms. The former pharmaceutical executive suggested that if CZ faces charges under the Bank Secrecy Act (BSA), probation or a one-year sentence might be likely, given certain conditions.

Section 1956 of Title 18 of the U.S. Code, which CZ might be charged under, carries sentences of up to 20 years for financial transactions involving unlawfully obtained property. Shkreli emphasized the power dynamics at play, alleging that the Department of Justice’s actions aimed to showcase the government’s ability to assert control whenever deemed necessary.

This isn’t the first time Shkreli has discussed jail with cryptocurrency figures. Previously, he shared similar sentiments with Terraform Labs founder Do Kwon and divulged details about former FTX CEO Sam Bankman-Fried’s experiences behind bars.

Binance CZ’s Bid for No Jail Time 

Meanwhile, former Chief of the SEC Office of Internet Enforcement, John Reed Stark, tweeted updates on Binance CZ’s legal battles. The Binance founder, arguing for the right to return to the UAE until sentencing, faces opposition from the DOJ, which seeks a review of the decision allowing CZ to leave the United States. CZ’s legal team vehemently opposes the DOJ’s motion, asserting that the established bail conditions provide sufficient assurance of his return.

The legal tussle takes a fascinating turn as CZ’s defense team discloses plans for sentencing arguments. CZ, pleading guilty to a non-violent, non-fraud offense, aims for either no jail time or a combination of home detention and prison. The defense cites CZ’s willingness to accept responsibility, public figure status, and the lack of criminal history as factors in favor of leniency.

However, the opposition highlights the substantial penalties CZ could face under the Sentencing Guidelines, emphasizing the need for accountability. The DOJ’s motion underscores the severity of Binance’s conduct, with the historic $4.3 billion settlement reflecting the gravity of the situation.

However, the crypto community is awaiting Judge Richard A. Jones’s decision, which is expected by November 27th. The outcome will shape CZ’s future and set a precedent for accountability in the evolving landscape of cryptocurrency regulation.

Related Reading |  UK Regulators Facilitate Blockchain Adoption For Investment Manager: Report