Binance founder Changpeng “CZ” Zhao has been ordered to remain in america till his sentencing in February, with a federal decide figuring out there’s an excessive amount of of a flight danger if the previous alternate CEO is allowed to return to the United Arab Emirates.
On Dec. 7, Seattle district court docket Decide Richard Jones ordered Zhao to remain within the U.S. till his Feb. 23, 2024 sentencing date. He faces up to 18 months in prison after pleading responsible to cash laundering on Nov. 21 and has agreed to not attraction any potential sentence as much as that size.
“The defendant has monumental wealth and property overseas, and no ties to america,” Jones wrote, agreeing with earlier arguments from federal prosecutors who mentioned they “wouldn’t be capable to safe his return” if Zhao determined to not return to america.
“His household resides within the UAE and it seems that he has favored standing within the UAE. Below these circumstances the Court docket finds that the defendant has not established by clear and convincing proof that he’s not more likely to flee if he returns to the UAE,” Jones added.
“Based mostly on the foregoing motive, the Court docket GRANTS the federal government’s movement, and the defendant shall stay within the continental United States through the interval between his plea and sentencing.”
On Dec. 6, Jones accepted Zhao’s guilty plea submitted virtually two weeks earlier however didn’t resolve on a federal prosecutor’s movement to dam him from returning to Dubai, the place he resides.
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Zhao is currently on a $175 million bond, which Jones said “appears to be largely comprised of assets beyond the government’s reach.”
He added the bond conditions allow Zhao to freely travel in the U.S. and allow his family to visit him, which he called “hardly burdensome impositions on the defendant’s freedom.”
In November, Binance and Zhao settled with U.S. regulators for $4.3 billion and admitted to operating an unlicensed money-transmitting enterprise and violating the Financial institution Secrecy Act. The settlement additionally noticed Zhao step down as CEO.
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