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Restriction Imposed on Changpeng ‘CZ’ Zhao by US Judge, Prohibiting Travel Outside the Country

Restriction Imposed on Changpeng ‘CZ’ Zhao by US Judge, Prohibiting Travel Outside the Country

Federal Judge Orders Binance Founder to Stay in the US Amidst Criminal Charges

A federal judge in Seattle has ruled that Changpeng Zhao, the founder of Binance, must remain in the United States until his sentencing on criminal charges related to anti-money laundering violations. U.S. District Judge Richard Jones granted prosecutors’ request to impose travel restrictions on Zhao, citing concerns about his significant wealth overseas and the lack of an extradition treaty between the U.S. and the United Arab Emirates (UAE). Zhao, a Chinese-Canadian entrepreneur, pleaded guilty to failing to maintain an effective anti-money laundering program and faces 10 to 18 months in prison.

Judge Reverses Previous Ruling

Judge Jones reversed a previous ruling that allowed Zhao to return to his home in the UAE prior to his sentencing. In his ruling, Jones stated that this was an unusual case due to Zhao’s wealth and lack of ties to the United States. The judge agreed with prosecutors that Zhao posed a flight risk and should remain in the U.S.

Prosecutors Argue Flight Risk

Prosecutors argued that Zhao should stay in the U.S. because he could easily flee and sustain any financial losses from losing his $175 million bond and an additional $5 million in collateral. They also raised concerns about the UAE government potentially shielding Zhao from extradition attempts.

Defense Downplays Concerns

Zhao’s attorneys downplayed these concerns, emphasizing their client’s willingness to surrender and admit wrongdoing. They argued that the bond conditions already allowed Zhao freedom within the U.S. and visits from his family, making travel restrictions unnecessary.

Binance’s Legal Troubles

Binance, which Zhao founded in 2017, has faced investigations by U.S. authorities for facilitating illegal transactions. Last year, the company agreed to pay fines and forfeitures for failing to guard against money laundering. Zhao stepped down as CEO and reached a settlement of $4.3 billion tied to sanctions and money transmission violations.

Hot Take: Judge Orders Binance Founder to Stay in US Amidst Concerns of Flight Risk

In a significant development, a federal judge has ruled that Changpeng Zhao, the founder of Binance, must remain in the United States until his sentencing on criminal charges related to anti-money laundering violations. The judge cited concerns about Zhao’s significant wealth overseas and the lack of an extradition treaty with the UAE as reasons for imposing travel restrictions. Prosecutors argued that Zhao posed a flight risk due to his ability to flee and sustain financial losses. This ruling prolongs a previous decision that would have allowed Zhao to return to the UAE. The legal troubles faced by Binance continue to shake up the cryptocurrency industry.

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Restriction Imposed on Changpeng ‘CZ’ Zhao by US Judge, Prohibiting Travel Outside the Country