Binance founder Changpeng “CZ” Zhao is currently required to remain in the U.S. as a federal judge reviews a motion from the U.S. Department of Justice that seeks to keep him in the country until he is sentenced early next year.
Recently, Zhao pleaded guilty to violating the Bank Secrecy Act and stepped down as CEO of Binance, the world’s largest cryptocurrency exchange by volume. The exchange itself admitted guilt to violating sanctions and money transmission laws, agreeing to pay a significant $4.3 billion fine and to have compliance monitors embedded to report back to the U.S. government.
After Zhao’s guilty plea, a magistrate judge granted his release on a $175 million personal recognizance bond. Zhao placed $15 million in a trust account and had three guarantors provide over $5 million in collateral to secure the bond. Initially, he was allowed to return to the UAE, where his family resides. However, District Judge Richard Jones paused this part of the ruling on Monday.
The U.S. Department of Justice’s attorneys moved to keep Zhao in the U.S., citing concerns about him being a flight risk due to his extensive wealth and the absence of an extradition treaty between the U.S. and the UAE. They are not seeking to detain him before his sentencing on Feb. 23, 2024, and Judge Jones did not indicate when he might rule on the motion during Monday’s hearing.
Zhao’s legal team argued that his willingness to plead guilty in the first place demonstrates his commitment to taking responsibility. They also pointed out that his wife and children cannot relocate for several months just for the sentencing phase.
The Department of Justice stated that Zhao could face anywhere from a few months to as many as 10 years in prison, with the possibility of appealing any sentence longer than 18 months. Additionally, he has agreed to pay a $50 million fine as part of his plea agreement.
