- Zhao admitted last week to violating the Banking Secrecy Act and resigned from the CEO position of Binance, the world’s largest cryptocurrency exchange.
- Following Zhao’s admission of guilt, a judge released him on bail of $175 million.
- Attorneys from the Department of Justice argued that there could be a flight risk if Zhao were allowed to leave the country, seeking to keep him in the U.S.
Changpeng Zhao, after being released on bail in the U.S., is banned from returning to the UAE: CZ will stay in the U.S.!
Zhao Not Allowed to Leave the U.S.
Binance founder Changpeng “CZ” Zhao needs to stay in the United States, at least for the time being, considering a move by the U.S. Department of Justice that could require him to stay in the country until the beginning of next year.
Zhao admitted last week to violating the Banking Secrecy Act and resigned from the CEO position of Binance, the world’s largest cryptocurrency exchange. The exchange itself was found guilty of violating sanctions and laws related to money transfers and agreed to pay a $4.3 billion fine and appoint compliance observers capable of reporting to the U.S. government.
Following Zhao’s admission of guilt, a judge released him on $175 million bail. Zhao deposited $15 million into a trust account, and three sureties put up over $5 million in collateral to secure the bail. According to the conditions of the bail, he was free to return to the United Arab Emirates, where his wife and children also live. However, Judge Richard Jones halted this part of the decision on Monday.
However, attorneys from the Department of Justice argued that there could be a flight risk if Zhao were allowed to leave the country. They mentioned that he still has a significant fortune, and there is no extradition agreement between the U.S. and the UAE. They are not pressing for him to enter prison before his sentence on February 23, 2024.
No timeframe set for the hearing
Judge Jones did not indicate on Monday whether he would set a hearing regarding the motion or when he would otherwise decide. Zhao’s lawyers argued that he had already come to the U.S. to take responsibility by admitting guilt.
They also pointed out that it wouldn’t be feasible for his wife and children to move only for a few months for the sentence. Zhao could face a prison sentence ranging from a few months to 10 years, according to the DOJ, but he can appeal a sentence longer than 18 months. Additionally, he agreed to pay a $50 million fine as part of the settlement.
