Former Binance CEO Changpeng Zhao’s attorneys have requested a federal judge to allow the cryptocurrency trading platform founder to return to the United Arab Emirates before his U.S. sentencing after admitting to money laundering earlier this week.
Having stepped down from Binance as part of a $4.3 billion settlement with the Department of Justice, Zhao could face up to 10 years in prison. However, a magistrate granted Zhao permission to travel home, prompting DOJ prosecutors to urge U.S. District Judge Richard Jones to prevent Zhao from departing.
Zhao’s legal team, representing his dual citizenship in Canada and the UAE, submitted a motion on Thursday in the Western District of Washington in Seattle. They argued that Zhao does not pose a flight risk, highlighting his voluntary appearance in court to plead guilty to the charges.
“The fact that Mr. Zhao’s home and his family are in the UAE does not make him a flight risk, and preventing him from returning to them would be punitive,” they said. “Allowing Mr. Zhao to remain in the UAE will, in turn, allow him to take care of his family and prepare them for his return to the U.S. for sentencing.”
A spokesperson for the Justice Department did not immediately respond to a request for comment. The ruling on Zhao’s request is expected to be made by Monday.
Binance, the world’s largest crypto exchange, has been under investigation by federal regulators and law enforcement agencies for various violations. In a settlement with the government, Binance officials admitted to failing to prevent money laundering on the platform and illegal operations in the U.S., allowing traders in nations facing U.S. sanctions, such as Iran, to conduct business with Americans.
Moreover, federal investigators alleged that Binance illegally profited from allowing “darknet” actors and ransomware hackers to operate on the platform and did not adequately screen for other illicit services.
Court documents filed Tuesday revealed that Zhao knowingly disregarded certain filtration processes for bad actors on his platform and failed to file suspicious activity reports with regulators.
