Changpeng Zhao (CZ), the founder and former CEO of Binance, is set for release from jail in just nine days. After serving a four-month sentence that began on April 30, 2024, CZ’s return to freedom is eagerly anticipated, not only by his family but also by the global crypto community.
What’s Next for CZ?
CZ, a Canadian citizen with a UAE passport, is expected to head straight to the UAE to reunite with his family. However, his legal troubles are far from over. A new class-action lawsuit, filed in the U.S. Western District Court of Washington, alleges that Binance’s negligent compliance practices facilitated the laundering of stolen crypto on its platform.
The Lawsuit Against Binance
In this lawsuit, plaintiffs Philip Martin, Natalie Tang, and Yatin Khanna claim that Binance’s failure to implement robust KYC and AML procedures allowed stolen funds to be laundered through its exchange. None of the plaintiffs held accounts with Binance, yet their stolen crypto, taken from other platforms like Coinbase, ended up on Binance.
Binance’s Ongoing Legal Battles
Despite his upcoming release, CZ’s legal challenges continue to mount. The plaintiffs argue that Binance’s non-compliance with statutory KYC and AML laws led to the loss of their crypto assets. This case adds to the list of legal hurdles Binance and CZ must navigate, even after the $4.3 billion settlement with U.S. authorities in late 2023.
What Lies Ahead for CZ?
As CZ prepares to leave jail, his next steps will be crucial for both his personal future and the ongoing operations of Binance. The crypto community and regulatory bodies worldwide will be watching closely as CZ navigates the aftermath of his legal battles. While Binance performed well in his absence, there’s no doubt that CZ has been missed.
