Binance founder and former CEO Changpeng “CZ” Zhao must now remain in the U.S. as a federal judge is deliberating a motion by the U.S. Department of Justice forcing CZ not to leave the country until his trial early next year.
Zhao pleaded guilty to violating the Bank Secrecy Act last week and stepped down as CEO of Binance as part of his settlement. The exchange itself also pleaded guilty to charges of violating sanctions and money transmission laws, reaching a resolution with a fine of $4.3 billion and embedded compliance monitors.
Following Zhao’s pleading, a magistrate judge approved his release on a personal recognizance bond of $175 million. Zhao placed $15 million in a trust account, and three guarantors contributed over $5 million in collateral to ensure the bond. Under the bond release’s terms, Zhao was able to return to the UAE, where his wife and children reside. However, District Judge Richard Jones suspended this part of the ruling on Monday.
However, attorneys from the U.S. Department of Justice sought to keep Zhao in the U.S, asserting that his departure could pose a flight risk. They emphasised his substantial wealth and the absence of an extradition treaty between the U.S. and the UAE. The prosecutors did not advocate for his pre-sentencing incarceration before the scheduled date on February 23, 2024. During Monday’s hearing, Judge Jones did not mention whether he would schedule a hearing or specify when he might otherwise rule on the motion.
In response, Zhao’s legal team contended that his willingness to take responsibility was evident in his decision to come to the U.S. and pleaded guilty initially. They also cited that his wife and children cannot relocate for a few months waiting for sentencing.
According to the Department of Justice, Zhao could receive a prison sentence from a few months to a maximum of 10 years. Still, Zhao can appeal any sentence longer than 18 months.
Changpeng Zhao has also agreed to pay a $50 million fine as part of his plea settlement.