Binance Co-Founder Changpeng Zhao Mandated to Remain in the US until February Sentencing

Binance Co-Founder, Changpeng Zhao, Ordered to Stay in the US Until Sentencing

A US court has ruled that Changpeng Zhao (CZ), co-founder and former CEO of Binance, must remain in the United States until his sentencing on February 23. The decision was made by Judge Richard Jones, who considered Zhao’s wealth to be a potential flight risk if he were allowed to return to the United Arab Emirates. The judge sided with the prosecution team, which argued against Zhao’s departure from the US, emphasizing his significant wealth and lack of ties to the country.

Zhao Paid $175 Million Bond

After pleading guilty to money laundering and stepping down as Binance CEO, Zhao transferred the role to Richard Teng. He now faces up to 18 months in prison. However, he is currently able to remain free in the US thanks to a $175 million bond. The majority of the bond consists of assets that are beyond the reach of the government. Judge Jones considered the bond conditions to be reasonable and not overly restrictive on Zhao’s freedom.

Binance Withdraws License Application for UAE Venture

Binance recently retracted its license application for the Abu Dhabi Investment Fund, signaling a shift in focus away from its UAE ventures. However, the exchange still has an ongoing application to provide custody services to professional clients. Binance stated that the license application withdrawal was unnecessary when considering its global needs.

Hot Take: CZ’s Wealth Puts Him at Risk of Fleeing Justice

The US court’s decision to keep Changpeng Zhao in the country until his sentencing reflects concerns about him being a flight risk. With no significant ties to the United States and his family residing in the UAE, the court deemed Zhao’s enormous wealth abroad as a potential incentive for him to flee. Retaining Zhao in the US ensures that he remains available for the legal process. However, with a $175 million bond and the ability to roam freely within the country, some may question whether these measures adequately mitigate the flight risk.