Judge Rules Binance Founder Must Stay in the US
A federal judge in Seattle has made a ruling that Changpeng Zhao, the founder and former CEO of Binance, must remain in the United States until his sentencing for money laundering charges. This decision overturns a previous ruling that allowed Zhao to return to the UAE. The judge stated that he was convinced by the Justice Department’s argument that Zhao posed a flight risk.
Judge Cites Wealth Abroad as Flight Risk Factor
Despite Zhao posting a $175 million bond, the judge expressed concern that his substantial wealth could incentivize him to forfeit the bond for his freedom. The government believes that most of Zhao’s wealth is held overseas, including hundreds of millions of dollars in accessible cryptocurrency.
Zhao Faces Money Laundering Charges
Zhao is facing money laundering charges related to allegations that Binance ignored criminal transactions on its platforms. If convicted, he could face up to 18 months in prison. Binance recently reached a settlement with the US government, agreeing to pay over $4 billion in fines.
Concerns Over Extradition and Citizenship
The judge also referenced concerns about Zhao’s citizenship and potential extradition issues. Although he is now a citizen of Canada, where he moved at a young age, the judge mentioned an unverified claim that Zhao was offered citizenship by the UAE. This raised concerns that he could exploit the lack of an extradition treaty between the UAE and the US.
Zhao Allowed to Remain Free in the US
Despite not posing a danger to the community, Judge Jones ordered that Zhao must stay within the continental United States until his sentencing in February. This decision allows him to remain at liberty but restricts his movement.
Hot Take: Binance Founder Must Stay in the US
A federal judge has ruled that Changpeng Zhao, the founder of Binance, must remain in the United States until his sentencing on money laundering charges. The judge cited concerns over Zhao’s wealth abroad and potential flight risk as reasons for this decision. Despite Zhao’s substantial bond and lack of danger to the community, the judge believes that his access to overseas wealth and potential citizenship offers from other countries could incentivize him to flee. This ruling highlights the seriousness of the charges against Zhao and the determination of the US government to ensure he faces justice.
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