According to a federal judge, former Binance CEO Changpeng “CZ” Zhao is a flight risk and must remain in the United States while awaiting sentencing.
Binance founder Changpeng “CZ” Zhao has been ordered to remain in the United States until his February sentencing, with a federal judge determining that allowing the former exchange CEO to return to the United Arab Emirates would pose too much of a flight risk.
On December 7, Seattle District Court Judge Richard Jones ordered Zhao to remain in the United States until his sentencing date on February 23, 2024. After pleading guilty to money laundering on Nov. 21, he faces up to 18 months in prison and has agreed not to appeal any potential sentence of that length.
“The defendant has enormous wealth and property abroad and no ties to the United States,” Judge Jones wrote, agreeing with federal prosecutors’ earlier arguments that they “would not be able to secure his return” if Zhao did not return to the United States.
“His family lives in the UAE, and he appears to have favored status there.” “In these circumstances, the Court concludes that the defendant has failed to establish by clear and convincing evidence that he is unlikely to flee if he returns to the UAE,” Judge Jones added.
“Based on the foregoing reason, the Court GRANTS the government’s motion, and the defendant shall remain in the continental United States during the period between his plea and sentencing.”
On December 6, Judge Jones accepted Zhao’s guilty plea, which had been submitted nearly two weeks before, but did not make a decision on whether he could return to Dubai, where he currently resides.
Zhao is currently bonded for $175 million, which Judge Jones stated “appears to be largely comprised of assets beyond the government’s reach.”
He added that the bond conditions allow Zhao to freely travel in the United States and visit him, which he described as “hardly burdensome impositions on the defendant’s freedom.”
Binance and Zhao agreed to a $4.3 billion settlement with US regulators in November, admitting to operating an unlicensed money-transfer business and violating the Bank Secrecy Act. Zhao stepped down as CEO as part of the settlement.
Conclusion
Judge Jones’s decision to require CZ to stay in the US until his sentencing hearing adds another layer of uncertainty to the crypto industry. It will be important to continue monitoring this case and its potential consequences for Binance and the broader crypto market as it develops further.
