Binance Founder Changpeng Zhao Barred From Traveling To UAE, Must Remain In US Until Sentencing

Changpeng Zhao, famously known as CZ, and the architect of cryptocurrency exchange Binance, has been restricted from traveling back to the United Arab Emirates.

What Happened: The decision stems from Zhao's guilty plea to charges related to breaching the Bank Secrecy Act. With his sentencing set for February 2024, the former CEO of Binance was granted temporary freedom based on a personal recognizance bond valued at $175 million. The bond arrangement included cash in escrow and an approximate $5 million in collateral provided by sureties.

Initially, the terms of Zhao’s bond permitted him to return to his residence in the UAE, where his immediate family also resides. However, prosecutors raised concerns about the possibility of flight risk due to Zhao's substantial wealth and the lack of an extradition agreement between the United States and the UAE.

Upon review, District Judge Richard Jones from the Western District of Washington in a detailed ruling acknowledged the reasoning provided by Zhao could typically lead to the dismissal of the government’s request. He pointed out, “The defendant has articulated justifications that in most cases would cause the government's motion to be denied.” Yet, what swayed the judge’s decision were the exceptional circumstances surrounding Zhao’s considerable financial resources, his family’s residence in the UAE, and the absence of any substantial ties to the U.S.

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Why It Matters: Judge Jones underscored the severity of the potential penalties Zhao faces, noting, “While the defendant has indicated he will be asking for a lesser sentence, the government has indicated it may be asking for as much as 18 months of incarceration.” Such a duration doesn’t denote a negligible period, which further contributed to the verdict passed down.

After admitting to contraventions connected to anti-money laundering and money transmission regulations, Binance consented to a fine of $4.3 billion. Zhao had voluntarily resigned from his leading role at Binance in the wake of these events.

Price Action: At the time of writing, Bitcoin (CRYPTO: BTC) was trading at $43,521, down 1.02% in the last 24 hours, according to Benzinga Pro. 

Photo Courtesy: Wikimedia Commons

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