CZ Zhao Confined in U.S. Awaiting Sentencing: Binance Update

• US Judge Prohibits Binance Founder from Leaving the Country
• Zhao's Bail Conditions
• Judge's Ruling
• Zhao's Future Sentence

US Judge Prohibits Binance Founder from Leaving the Country

Changpeng Zhao, the founder and former CEO of Binance, has been barred from returning to the United Arab Emirates (UAE) until his sentencing, according to a ruling by a federal judge on Thursday night. Zhao is facing charges of violating the Bank Secrecy Act, to which he pleaded guilty last month. His sentencing is currently scheduled for February 2024.

Zhao's Bail Conditions

Zhao, after his release on a hefty $175 million personal recognizance bond, was required to keep some cash in escrow and have guarantors provide around $5 million worth of assets as collateral. Despite his bond conditions initially allowing him to return to the UAE, where his family resides, prosecutors contended that he posed a flight risk and should not be permitted to exit the U.S.

Judge's Ruling

District Judge Richard Jones, from the Western District of Washington, sided with the Department of Justice. Jones highlighted that while Zhao has provided justifications that would typically deny the government's motion, the enormity of Zhao's wealth and the lack of an extradition treaty between the UAE and the U.S. were key factors in his decision. Furthermore, Zhao's family living in the UAE and the absence of any apparent ties to the United States raised concerns.

Jones also mentioned that despite Zhao's intent to request a reduced sentence, the government might seek an imprisonment of up to 18 months. As a result, the potential sentence Zhao is facing is not insignificant.

Zhao's Future Sentence

The former Binance CEO could face a sentence of up to 18 months, though he might serve as few as 10, as per the judge's statement. Zhao resigned from his role at Binance last month after the global crypto exchange admitted guilt to violating anti-money laundering and money transmitter rules. As part of its plea deal, Binance has agreed to pay a hefty fine of $4.3 billion.

Edited by Jonathan Stoker