Binance founder Changpeng “CZ” Zhao must remain in the US, at least for now, as a federal judge considers a request from the US Department of Justice that would require him to remain in the country until his sentencing early next year.
Zhao pleaded guilty last week to violating the Bank Secrecy Act and resigned as CEO of Binance, the world’s largest crypto exchange by volume. The exchange itself pleaded guilty to violating sanctions and money transfer laws, agreed to pay a $4.3 billion fine and install compliance monitors who can report to the US government.
After Zhao pleaded guilty, a judge granted his release on a $175 million personal recognizance bond. Zhao placed $15 million in escrow and had three sureties post over $5 million in collateral to secure the bond. Under the terms of the bond release, he was free to return to the UAE, where his wife and children also live. District Judge Richard Jones upheld that part of the sentence on Monday.
However, US Justice Department lawyers have decided to keep Zhao in the US, arguing that he could pose a flight risk if he leaves the country. They pointed out that he still has a large fortune and that there is no extradition treaty between the US and the UAE. They are not pushing to send him to prison before his sentencing on February 23, 2024. Judge Jones did not indicate whether he would schedule a hearing or when otherwise he might rule on the motion at Monday’s hearing.
Zhao’s lawyers argued that he had already demonstrated his intent to accept responsibility by traveling to the United States to plead guilty in the first place.
His wife and children couldn’t move for a few months just to hear the verdict, they said.
Zhao faces a prison sentence ranging from a few months to up to 10 years, the Justice Ministry said, although Zhao can appeal any sentence longer than 18 months.
As part of his plea agreement, he also agreed to pay a $50 million fine.