Binance co-founder Yi He says CZ in 'positive situation' in US: report

Yi He, co-founder of Binance, said that crypto exchange's former CEO, Changpeng Zhao, is in a “positive situation” in the U.S. as he awaits sentencing, which is slated for April 30.

He said at a Binance Chinese community meetup in Dubai that Zhao’s current standing in the U.S. is “largely peaceful and past regulatory pressures have been internally anticipated,” according to Binance News, the crypto exchange’s content aggregator for its community. “She believes the existing situation to be the most optimal outcome given the circumstances,” the report said.

He’s comment comes after Zhao pleaded guilty late last year in the U.S. to anti-money laundering and sanctions violations, and has agreed to pay a $50 million fine and stepped down from his chief executive post. His sentencing is scheduled for April 30.

Zhao may face a prison sentence of up to 18 months, but U.S. prosecutors are seeking a longer term. Zhao remains free on bail after securing his release with a $175 million bond. A judge has previously denied his request to travel to Dubai.

Binance did not immediately respond to The Block's request for further comment.

Binance has also pleaded guilty to money laundering, conspiracy to conduct an unlicensed money-transmitting business and sanctions violations, and had agreed to pay a total of $4.3 billion in fines. The exchange said in February that it has made "considerable compliance enhancements" over the past few years to ensure sound know-your-customer process and anti-money laundering detection.

In November, Binance appointed Richard Teng as chief executive officer after Zhao stepped down. Teng, who first joined Binance as CEO of Binance Singapore in 2021, was only appointed as head of regional markets in May 2023, following roles including head of MENA.