US Judge Rejects CZ’s 2nd Request to Travel to UAE
CZ traveled to the USA to attend the DOJ lawsuit that led to a $4 billion fine on Binance.US. At the same time, the regulator asked CZ to plead guilty to the charges and halt trading activities in the jurisdiction. However, the firm was facing charges from other financial regulators and raised concerns regarding CZ’s travel to the UAE.
Lawyers submit concealed medical reports regarding his child residing in Dubai. However, the court denied the motion to allow the former CEO to travel to UAE. As per the court ruling, the executive is not allowed to travel out of the United States before his sentencing hearing in February 2024.
On 29th December, Judge Richard Jones of the Western District of Washington denied the motion from CZ asking for permission to travel outside of the region. The reason for a second motion has not been shared with the public.
On 7th December, Judge Jones ordered Zhao to stay within the United States and claimed that he was at flight risk if he is granted permission to travel to his family in UAE. He can face up to 18 months behind bars on account of his sentencing hearing in February. At present, he is free on a $175 million bond bail.
Indian Regulators Block Binance, Huobi, and Other Crypto Trading Platforms
The Financial Intelligence Unit (FIU) has requested a ban on Binance, KuCoin, Huobi, Kraken, Bitstamp, MEXC Global, Bitfinex, Gate.io, and Bittrex. The 9 trading platforms are not local exchanges and the regulators have extended illegal trading and Anti-Money Laundering regulations on the platform.
In a recent press release, the trading platforms noted that the Ministry of Electronics and Information Technology blocked company URLs to prevent citizens from accessing these websites. At the time, 31 VDA SPs have acquired licenses from FIU.
However, the agency has noted that various digital currency trading platforms have not applied for registration. At the same time, regulators have alleged that the firms do not comply with Anti-Money Laundering laws and Counter Financing Terrorism (CFT) guidelines.
At present, digital asset services providers based out of India or foreign jurisdictions are subjected to regulations introduced by the Finance Intelligence Unit as reporting entities.
In accordance with the regulations, VASPs have to comply with the Prevention of Money Laundering Act (PMLA) of 2002. In 2022, India was ranked as the second biggest nation in terms of crypto trading interest.
Binance Signs $2.7 Billion Settlement Deal with CFTC
BinanceUS was facing charges from commodity regulators in the region namely CFTC. The regulatory agency asked the former CEO to pay $150 million and the firm to issue a $2.7 billion penalty.
In a statement issued on 18th December, CFTC noted that the Northern District Court of Illinois has approved the previously announced settlement and concluded that enforcement action was issued by CFTC in November.
The courts have also ruled that CZ and Binance violated the Commodity Exchange Act (CEA) and imposed a civil monetary penalty on the former CEO. At the same time, the ruling has directed the firm to issue $1.35 billion as disgorgement and pay $1.35 billion in penalties to CFTC in a recent statement.
The settlement has concluded a lawsuit against CZ and Binance. CFTC officials brought charges against CZ on 27th March for violating federal law and operating an illegal derivatives exchange.
