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Changpeng Zhao (CZ), the former CEO and co-founder of the Binance cryptocurrency exchange, faced charges in 2022 for violating U.S. anti-money laundering regulations. His exchange allowed U.S. citizens to use the platform without the necessary KYC verification, and later, Binance could be accessed within U.S. jurisdiction through VPN services. It is alleged that the Binance team intentionally allowed U.S. citizens access to Binance without obtaining all the necessary regulatory approvals.
Before the court’s sentencing, most U.S. authorities sought to imprison Zhao for 2 to 3 years. However, the court judge noted that despite the lack of concrete evidence against Zhao to prove these charges, Zhao himself admitted to all the allegations.
Binance Faces Legal Hurdles Currently, the Binance cryptocurrency exchange is facing significant legal challenges in multiple jurisdictions. Although the company has settled with U.S. authorities, its lawsuit against the U.S. Securities and Exchange Commission (SEC) is still ongoing.
According to the SEC’s lawsuit, Binance operated illegally as an unregistered securities exchange, broker, and clearing agency.
Experts believe that clear rules and laws for cryptocurrencies will resolve conflicts between regulatory bodies and top cryptocurrency participants. This is because the SEC applied all traditional rules and laws to Binance, which are not suited for digital assets.
Sentiment: Positive
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