Binance Founder CZ's Stay in the U.S. Extended Amid Legal Proceedings

Changpeng Zhao Faces Extended U.S. Sojourn as Justice Department Questions Flight Risk

Binance founder Changpeng "CZ" Zhao, who recently pled guilty to violating the Bank Secrecy Act, finds himself in a holding pattern in the U.S. as legal complexities surrounding his case unfold. A federal judge has temporarily halted his return to the UAE, where his family resides, while the U.S. Department of Justice seeks assurance of his presence until sentencing early next year.

Last week, following Zhao's guilty plea and subsequent resignation as Binance CEO, a magistrate judge granted his release on a $175 million personal recognizance bond. Zhao, demonstrating his commitment to the legal process, deposited $15 million into a trust account, supported by three guarantors who collectively put up over $5 million in collateral to secure the bond. Originally, he was permitted to return to the UAE under the bond's terms, but District Judge Richard Jones intervened, putting a hold on this aspect of the ruling.

The Department of Justice contends that Zhao's departure from the U.S. could pose a flight risk, citing his substantial wealth and the absence of an extradition treaty between the U.S. and the UAE. Notably, they are not advocating for pre-sentencing incarceration, with the focus remaining on ensuring his presence until the sentencing date set for February 23, 2024. The judge has not specified a timeline for addressing the motion.

In response, Zhao's legal team emphasized his commitment to accountability, pointing out his voluntary appearance in the U.S. to enter the guilty plea. They argued against his continued stay, considering the impact on his wife and children, who are unable to relocate temporarily just for the sentencing phase. The Department of Justice estimates Zhao's potential prison term ranging from a few months to a maximum of 10 years, with the possibility of appeal for sentences exceeding 18 months. Additionally, as part of his plea agreement, Zhao is set to pay a $50 million fine.

(Photo Source / Blockonome)