Key takeaways
- Binance CZ has been ordered to remain in the country until his sentencing in February.
- Judge Jones agreed with earlier claims from federal prosecutors that they would not be able to secure Zhao’s return if he chose not to return to the US.
Changpeng “CZ” Zhao, the founder of Binance, has been ordered to remain in the country until his sentencing in February. A federal judge determined that allowing the former exchange CEO to return to the United Arab Emirates would pose an excessive danger of flight.
Judge Richard Jones of Seattle District Court ruled on December 7 that Zhao must remain in the country until his sentence on February 23, 2024. He entered a guilty plea to money laundering on November 21 and has agreed not to fight any potential punishment of up to 18 months in prison.
Judge Jones agreed with earlier claims from federal prosecutors that they would not be able to secure Zhao’s return if he chose not to return to the United States, stating that the defendant has significant wealth and property abroad and no ties to the United States. Judge Jones went on to say:
“His family resides in the UAE and it appears that he has favored status in the UAE. Under these circumstances the Court finds that the defendant has not established by clear and convincing evidence that he is not likely to flee if he returns to the UAE,”
The judge reportedly said the court was not sufficiently convinced as to whether he would return to the US if allowed to travel now. The court filing said:
“While the bail package is substantial, if not unprecedented, it is a package that appears to be largely comprised of assets beyond the government’s reach.”
Zhao entered a guilty plea about two weeks prior, which Judge Jones accepted on December 6. However, Judge Jones has not yet decided whether to grant Zhao’s request to return to his home in Dubai.
Zhao presently has a $175 million bail, which Judge Jones stated seems to be primarily made up of properties that are outside the jurisdiction of the government.
He continued, calling the bail requirements “hardly burdensome impositions on the defendant’s freedom,” since they permit Zhao to travel freely inside the United States and to have visits from his family.
In November, Binance and Zhao reached a $4.3 billion settlement with US officials and acknowledged operating an unauthorized money-transmitting enterprise and breaching the Bank Secrecy Act. Zhao resigned as CEO as part of the settlement as well.
