International
Binance crypto founder Zhao sentenced to four months in prison
Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world’s largest cryptocurrency exchange.
Zhao, who went by the nickname CZ, has also satisfied the requirement of him to pay $50 million in fines, U.S. District Judge Richard Jones said in court Tuesday.
The judge also won’t impose five months of probation as was recommended by the probation officer, Mail Online reports.
The 47-year-old admitted to violating the Bank Secrecy Act by willfully failing to set up an effective anti-money laundering system at Binance, the cryptocurrency exchange he founded and ran as CEO from July 2017 to November 2023.
Binance also pleaded guilty to similar charges from the US Department of Justice in November 2023 and was forced to pay $4.3 billion in fines and restitution for failing to register as a money transmitting business, Forbes reported.
U.S. prosecutors had urged the court to sentence Zhao to three years in prison after he pleaded guilty to violating laws against money laundering.
They argued that sentencing Zhao to twice the maximum 18 months recommended under federal guidelines would reflect the magnitude of his willful violations, and send a message that would deter others.
A U.S. district court had in March ordered that Zhao must surrender his Canadian passport and notify the court before travelling within the country.
This came after U.S. District Judge, Honorable Richard A. Jones restricted his bond conditions.
The court ordered the businessman to surrender all valid and expired passports, and the documents were to be transferred to someone to be hired by his lawyers who would accompany the Binance founder on all trips where a passport might be needed.
He must also notify the relevant authorities of his movements.
In the case between the U.S. and Zhao as the defendant, the court ruling of March 11, 2024, obtained by SaharaReporters, is as follows: “Defendant must remain in the continental United States through the imposition of sentence.
“Defendant must notify Pretrial Services before any travel within the continental United States.
“Defendant must surrender his current Canadian passport to a third-party custodian employed and supervised by his counsel of record.
“The third-party custodian must retain control over that Canadian passport and must accompany Defendant on any travel that requires identification documents.
“Defendant must surrender all other current and expired passports and travel documents to his counsel of record, who may return those documents to defendant only with authorization from Pretrial Services or the Court.
“Defendant may not apply for or obtain a new passport or travel document from any country without the Court’s permission.”
In November 2023, Zhao pleaded guilty to criminal charges and violating the Bank Secrecy Act. He subsequently agreed to pay a fine and stepped down as the company’s CEO.
Zhao was released on bail of $175 million.
This was part of a $4.3 billion settlement with the Department of Justice, according to court documents.
The plea arrangement with the government followed years of investigation into the dealings of the world’s largest cryptocurrency exchange.
In December, Judge Jones barred Zhao from leaving the U.S. pending a verdict in his case.
In February, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said $26 billion passed through Binance Nigeria from unknown sources and users in one year.
The allegation came amid the free fall of the naira and clampdown on Bureaux de Change by President Bola Tinubu’s administration in an attempt to steady the rapid decline of Nigeria’s currency, naira.
Cardoso said the government was “concerned that certain practices go on that indicate illicit flows going through a number of these entities, and suspicious flows at best”.
The Nigerian government later arrested two Binance executives for alleged money laundering – Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, and Nadeem Anjarwalla, a British-Kenyan who is African regional manager for the cryptocurrency trading firm.
Anjarwalla later escaped from detention and fled to Kenya. Meanwhile, their trial has commenced in a Federal High Court in Abuja.
Thousands of people marched Tuesday in cities across South Africa to demand the departure of undocumented foreign nationals after a weeks-long campaign that has sent thousands fleeing and claimed four lives.
Police were out in force for the nationwide protests which capped a campaign of demonstrations led by citizen-led vigilante groups that set an unofficial June 30 deadline for foreigners without papers to leave.
There were isolated reports of looting, stone-throwing and confrontation, including near Johannesburg where security forces escorted a handful of foreign nationals away from a mob brandishing large sticks.
Crowds of demonstrators moved through the centre of the city, South Africa’s financial capital, where most shops were shuttered, workers stayed home, and transport hubs were quiet.
They waved flags and placards, watched by police in bulletproof jackets and riot helmets.
In the southeastern city of Durban, the Zulu heartland, protesters turned out in traditional warrior attire, carrying spears, whips and shields and some draped in leopard skins.
Demonstrator Brightness Gumbi, 48, said she was frustrated at not being able to afford to rent a premises for her business while foreign nationals were able to run shops.
“The illegal foreigners manage to pay it because they sell drugs to our people,” she told AFP. “I hope through these demonstrations our president will hear our cries and enforce stricter laws.”
In tourist magnet Cape Town, only about 100 people joined a march through the city centre, passing a counterprotest against Afrophobia and xenophobia.
– ‘Mass deportation’-
One of the continent’s wealthiest countries, South Africa is a magnet for migrant labour while grappling with an unemployment rate above 30 percent, high crime and a breakdown in services in many areas.
Groups mobilising against illegal immigrants say they take jobs and services from locals, claims that analysts say is unfairly scapegoating foreign nationals for government failures.
“South Africans have been replaced by illegal foreigners, increasing unemployment,” the leader of the anti-immigrant March and March group, Jacinta Ngobese-Zuma, told a crowd in Durban.
“We want mass deportation,” she said. “For the next six months we want the government to get rid of the people who have not left.”
At least two Mozambicans, an Ethiopian and a Malawian have been killed in the latest outburst of anti-immigrant violence, according to police.
Several African governments — including Nigeria, Malawi, Ghana, Zimbabwe and Mozambique — have organised voluntary repatriation flights and buses for their citizens.
South Africa has seen previous flare-up of violence targeting undocumented foreign nationals, but this is the first time governments have simultaneously organised repatriations.
More than 25,000 people had been processed for departure in recent weeks, authorities said Monday.
– ‘I’m scared’ –
As the protests unfolded in several cities, hundreds of migrants — mostly Malawians and Zimbabweans — gathered in Cape Town, Johannesburg and other centres, waiting for assistance to go home.
Some said their landlords had evicted them or their employers had fired them, fearing fines from officials or attacks by vigilante groups.
“The people in South Africa, they don’t want us here. I’m scared,” said a 23-year-old Zimbabwean woman, who asked to remain anonymous, where around 2,000 people were waiting for buses.
Only a few dozen Malawians remained at a site in Durban from where several thousand had been bused out in recent days, either taken back to their country or to a processing site near the border with Zimbabwe.
“I thought I could stay on but neighbours warned us last night,” 32-year-old Adam John told AFP. “I felt that it is better to try and get home while I still can.”
– ‘Weaponised’ –
Concerned about a repeat of unrest five years ago when around 350 people were killed in days of looting and riots, the government put in place a massive security deployment for Tuesday’s mobilisation.
President Cyril Ramaphosa announced stepped-up government plans to combat illegal immigration and called on traditional leaders to use their “standing to calm tensions”.
Coming ahead of local government elections in November, the anti-migrant push has been “politically weaponised”, labour analyst Dale McKinley said.
Previous anti-foreigner riots in South Africa have proved deadly. In 2008, violence left 62 people dead.
The following is the text of the US-Iran Memorandum of Understanding, as read out by a senior US official to reporters on Wednesday:
“The United States of America and Islamic Republic of Iran have jointly agreed in good faith on (a date yet to be determined, the official said), on the following:
“Paragraph 1 – The United States of America and the Islamic Republic of Iran and their allies in the current war, by signing this MOU, declare an immediate and permanent termination of military operations on all fronts, including in Lebanon, and undertake from now on not to initiate any war or any military operation against each other and to refrain from the threat or use of force against each other, and ensuring the territorial integrity and sovereignty of Lebanon. The final deal will confirm the permanent termination of the war on all fronts, including in Lebanon, and other provisions of this paragraph.
“Paragraph 2 – The United States of America and the Islamic Republic of Iran undertake to respect each other’s sovereignty and territorial integrity and to refrain from interfering in each other’s internal affairs.
“Paragraph 3 – The United States of America and the Islamic Republic of Iran commit to negotiating and achieving the final deal in maximum 60 days extendable with mutual consent.
“Paragraph 4 – Immediately upon the signing of this MOU, the United States of America will begin the removal of its naval blockade and any disturbances or impediments against the Islamic Republic of Iran, and will fully end the naval blockade within 30 days. During this period, the traffic of vessels will be in proportion to the numbers of pre-war traffic being restored by the Islamic Republic of Iran. The United States of America further undertakes to remove its forces from the proximity of the Islamic Republic of Iran within 30 days after the final deal.
“Paragraph 5 – Upon the signing of this MOU, the Islamic Republic of Iran will make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only, from the Persian Gulf to the Sea of Oman, and vice versa. The traffic of commercial vessels will immediately start, and considering the need for removing the technical and military obstacles, and de-mining by the Islamic Republic of Iran, will be instated within 30 days. The Islamic Republic of Iran will conduct dialogue with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz, in discussion with other Persian Gulf littoral states, in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz.
“Paragraph 6 – The United States of America undertakes with regional partners to develop a definitive mutually agreed plan with at least USD 300 billion for the reconstruction and economic development of the Islamic Republic of Iran. The mechanism for the implementation of this plan will be finalized as part of a final deal within 60 days. All required licenses, waivers, and permissions needed for the relevant financial transactions will be granted by the United States of America.
“Paragraph 7 – The United States of America undertakes to terminate all types of sanctions against the Islamic Republic of Iran, including the United Nations Security Council resolutions, IAEA Board of Governors resolutions, and all unilateral US sanctions, primary and secondary, in an agreed-upon schedule as part of the final deal. The Islamic Republic of Iran and the United States of America acknowledge the critical importance of the sanctions termination issue above mentioned, and express their intentions to immediately address these issues in the negotiations in order to achieve mutual agreement on them.
“Paragraph 8 – The Islamic Republic of Iran reaffirms that it shall not procure or develop nuclear weapons. The United States of America and the Islamic Republic of Iran have agreed to resolve the disposition of stockpiled enriched material pursuant to a mechanism that will be mutually agreed upon in accordance with the schedule mentioned in Paragraph 7, with the minimum methodology to be down-blending on site under the supervision of the IAEA. The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs, based on a satisfactory framework being agreed upon in the final deal. The final deal will confirm the provisions of this paragraph. The United States of America and the Islamic Republic of Iran acknowledge the critical importance of the nuclear issues above mentioned, and express their intention to immediately address these issues in the negotiation in order to achieve mutual agreement on them.
“Paragraph 9 – Pending the final deal, the United States of America and the Islamic Republic of Iran agree to maintain the status quo. The Islamic Republic of Iran will maintain the current status quo of its nuclear program, and the United States of America will not impose any new sanctions, and will not deploy additional forces in the region.
“Paragraph 10 – The United States of America undertakes that immediately upon the signing of this MOU, and until the termination of sanctions, US Department of Treasury will issue waivers for the export of Iranian crude oil, petroleum products and derivatives, and all associated services, including banking transactions, insurances, transportation, etc.
“Paragraph 11 – The United States of America undertakes to make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran upon the implementation of this MOU. The United States of America and the Islamic Republic of Iran will mutually agree on the procedures related to the release of these funds during the negotiations. Such funds, whether retained in the original account or transferred, shall be made fully usable for payment to any ultimate beneficiary designated by the Central Bank of the Islamic Republic of Iran. The United States of America undertakes to issue all necessary licenses and authorizations accordingly.
“Paragraph 12 – The United States of America and Islamic Republic of Iran agree that an executive mechanism will be established to monitor the successful implementation of this MOU and the future compliance of the final deal.
“Paragraph 13 – After signing this MOU and subject to the beginning of the implementation of Paragraphs 1, 4, 5, 10 and 11 of this MOU, and the continuing implementation of these measures, the United States of America and the Islamic Republic of Iran will start negotiations regarding the final deal exclusively on the other paragraphs.
“Paragraph 14 – The final deal will be endorsed by a binding UNSC resolution.”
Iran’s foreign ministry on Tuesday accused the United States of violating a fragile ceasefire during the past 48 hours in the southern coastal province of Hormozgan, without specifying the incident.
The accusation comes after US Central Command said its forces had on Monday attacked missile sites and boats in southern Iran that were trying to lay mines in the Gulf, while Iran’s Revolutionary Guards said it fired at US aircraft trying to enter its airspace.
“The US terrorist army, continuing its illegal and unjustified actions since the ceasefire… has, in the past 48 hours, committed a gross violation of the ceasefire in the Hormozgan region,” the Iranian foreign ministry said in a statement.
It added that Tehran “will not leave any evil unanswered and will not hesitate to defend the Iranian nation,” without elaborating.
Tuesday’s statement came as a top Iranian delegation was in Qatar for talks as part of a “diplomatic process” aimed at ending the war with the United States, which broke out on February 28
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