Yi He, one of the co-founders of Binance, recently shared insights into the legal situation of the crypto exchange's former CEO, Changpeng Zhao (CZ), in the United States. Speaking at a Binance Chinese community meetup in Dubai, He indicated that Zhao is currently experiencing a "positive situation" as he awaits sentencing, scheduled for April 30.

According to reports from Binance News, the crypto exchange's content aggregator for its community, He expressed that Zhao's status in the U.S. is "largely peaceful," with regulatory pressures having been internally anticipated. He believes that the current circumstances represent the most favorable outcome given the situation.

These remarks from He follow Zhao's guilty plea late last year to charges related to anti-money laundering and sanctions violations in the U.S. As part of the plea deal, Zhao agreed to pay a $50 million fine and stepped down from his position as chief executive officer. The sentencing for Zhao is set for April 30, with the possibility of facing a prison term of up to 18 months. However, U.S. prosecutors are reportedly seeking a longer sentence.

Despite the legal proceedings, Zhao remains free on bail, having posted a $175 million bond. He had previously sought permission to travel to Dubai, which was denied by a judge.

Binance itself has also faced legal challenges, having pleaded guilty to charges including money laundering, conspiracy to conduct an unlicensed money-transmitting business, and sanctions violations. The exchange agreed to pay fines totaling $4.3 billion as part of the resolution. In February, Binance announced significant compliance enhancements over recent years to strengthen its know-your-customer processes and anti-money laundering measures.

In the wake of Zhao's departure, Binance appointed Richard Teng as its new CEO. Teng, who initially served as CEO of Binance Singapore in 2021, took on the role of head of regional markets in May 2023, following previous positions including head of MENA.