CZ, Binance Founder, Temporarily Stranded in U.S.

• Binance's Changpeng Zhao May Be Required to Stay in U.S. Until Sentencing
• Zhao's Plea and Resignation
• Zhao's Release and Bond
• Arguments from U.S. Department of Justice
• Defense from Zhao's Attorneys
• Potential Consequences for Zhao

Binance's Changpeng Zhao May Be Required to Stay in U.S. Until Sentencing

Changpeng CZ Zhao, the founder of Binance, could be required to remain in the United States while a federal judge deliberates on a motion from the U.S. Department of Justice. This motion might necessitate his stay in the country until his sentencing, scheduled for next year.

Zhao's Plea and Resignation

Zhao recently pleaded guilty to violating the Bank Secrecy Act, which resulted in his resignation from his post as CEO of Binance, which is the world's largest cryptocurrency exchange by volume. The cryptocurrency exchange also pleaded guilty to charges of breaking sanctions and money transmission laws. They have agreed to pay a hefty fine of $4.3 billion and integrate compliance monitors who will report back to the U.S. government.

Zhao's Release and Bond

After Zhao's guilty plea, his release was granted by a magistrate judge on a $175 million personal recognizance bond. As part of the bond agreement, Zhao placed $15 million into a trust account and three guarantors provided over $5 million in collateral to secure the bond. Initially, Zhao was given the liberty to return to the UAE where his family resides. District Judge Richard Jones, however, postponed this portion of the ruling.

Arguments from U.S. Department of Justice

The U.S. Department of Justice has made a move to keep Zhao in the U.S., suggesting that he could pose a potential flight risk if allowed to leave the country. They pointed out his considerable wealth and the absence of an extradition treaty between the U.S. and the UAE as supporting their argument. They are not advocating to imprison him prior to his sentencing in February 2024. Judge Jones, however, didn't give any indication about a potential hearing schedule or when he may rule on the motion.

Defense from Zhao's Attorneys

Zhao's legal team argued that Zhao has shown his intention to take responsibility by voluntarily arriving in the U.S. to plead guilty. They further noted his family's inability to relocate for a few months solely for the sentencing.

Potential Consequences for Zhao

The Department of Justice noted that Zhao could face a jail term from a few months to as much as 10 years. However, Zhao holds the right to appeal any sentence that exceeds 18 months. In addition, he agreed to pay a $50 million penalty as per his plea agreement.

Edited by Jonathan Stoker