I can't help but wonder about this CZ binance deal. It seems out of character for him to just show up, consent to huge fines, agree to step down from binance, and subject himself to jail time. He had the financial means to just stay outside U.S. jurisdiction. I don't have answers, just questions. There is always the possibility he made a cooperation deal with the U. S. government, but there's no evidence of that. It just seems curious. Does anyone else feel this way?
pull down to refresh
It all boils down to Blackrock's ETF approval
Maybe Larry offered CZ a job after he gets off parole. It had better be a well paying job! In all seriousness, even if you accept that's it's all about the ETF, what's in it for CZ?
I think it will happen next year, but I won't be using it because...not your keys, not your coins.
the US wants binance to continue as it is used by them in addition to everyone else. there is definitely data sharing agreements already in place as part of this "plea" deal.
where there are bees there is a honeypot
remember: fully decentralized systems are a threat to the US gov but centralized exchanges, even "off shore" ones are intelligence and surveillance assets
Agreed. There are a zillion reasons why it's good for the U.S. How is it good for CZ?
he gets to start clean
Survival...
It really feels like Binance was too big too fail and they offered this deal to avoid cascade effects in all crypto market just in time before the ETF approval. Very expensive deal. Sending a message that crypto is good now and regulated. One step closer to ETF and green light for crypto institutional investment.
I agree with everything you say from the establishment's perspective, but why did CZ go along with it? It wasn't such a great deal for him.
Maybe he paid in BNB
That explanation seems too clean to me, but if I run with it: presumably he's got epic bags; and so anything that legitimizes crypto / bitcoin enough to nudge to mainstream adoption via ETF is, on the macro timescale, good for him?
Yes. That's true. I just have the feeling based on the speed and ease of this deal that there's more to the story.
Yeah who knows. He may be so guilty of things we may never know that this could be the best option and wants to start over a new life. Or If he collaborates he gets less jail time if any.
Under the federal system, if he cooperates with the government he'll get what they call a 4K letter, which allows a judge to ignore the sentencing guidelines and give him no jail. To get this, though, you typically have to provide evidence against someone else about crimes. He may want to start a new life, but he doesn't have to do it in the U.S. There are plenty of countries where he could live like a king without fear of extradition.
Actually it's a 5K letter! It's been a while since I practiced federal criminal defense law. I'm embarrassed.
No worries. 4K sounds good to me too hehe. I understood the concept. Very interesting.
I've thought about this as well. The agencies that claim to exist to protect the public don't really seem to care that much about that. I say that based on their actions. So it seems odd to me.
He knows it’s all going to collapse so this is great timing to leave the party
I think there's a lot that they're not telling us, yes.
Check Bent's opinion out --> https://tftc.io/charges-against-binance-and-cz-are-a-misdirection-play/
Thanks for posting this. So Marty says that CZ can keep operating in the shadows and gets a slap on the wrist? That doesn't seem so obvious to me. I guess it remains to be seen. I agree with the article in general.
It remains to be seen, yes. However, as you said in the original post, it's out of character for CZ to just show up and agree to everything. Something has to be up. And Bent's theory makes sense.
Time will tell, though.
I think he got a good deal.
Now he avoids jail & they can continue to sh$tcoin. They'll make that 4.3b back in a few weeks of the next bull run listing whatever new AI sh$tcoin.
He likely doesn't avoid jail. He cannot be involved in binance going forward, so he won't share in its future success.
I though he just had to step down?
Well... Even if he can't he's potentially the richest man in "cRypT0" so he'll be OK. Lol
He would be more okay if he avoided the U.S. in the first place and lived like a king elsewhere with his billions.
But then he probably wouldn't have had the most popular exchange without the US
Isn't CZ a Chinese citizen? Does he have US citizenship? Where does he reside? I don't get how the US has legal power over him if he doesn't live in the US or have US citizenship. Maybe I'm just ignorant.
You're right. They don't. He's a Chinese citizen. He grew up in Canada, and I don't think he has ever lived in the U.S. He has always been secretive about his residence, but I think he has acknowledged that he owns a condo in Dubai. He has a history of ignoring the U.S. government.
He was born in China but he is Canadian.
Does that just not mean that he is a dual passport holder and non-domicile?
In some ways this kind of seems reminiscent of the Justin Sun, Tron case, just on a slightly larger scale. I didn't read anything about jail time.
I thought the whole admission of guilt/fine was the plea bargain that keeps him out of maximum security wing on Alcatraz with SBF.
I find it odd as well. As an attorney you have more experience with deals that are made. Thanks for sharing. Something seems sus to me about it for the reasons you list.
Sounds like a scam.
deleted by author
This guy is the model: https://en.wikipedia.org/wiki/Jho_Low
deleted by author
There are a lot of countries that dont extradite to the U.S., especially for allleged non violent crimes which would only be civil matters elsewhere. It's just regulatory stuff. There is not even any theft allegation. https://www.southwestjournal.com/countries-without-extradition/