Binance Founder’s Travel Restricted by US Judge
Billionaire Binance founder Changpeng Zhao, also known as CZ, has been barred from leaving the United States before his criminal sentencing due to his significant wealth and lack of ties to the country. U.S. District Judge Richard Jones ruled against a previous decision that allowed Zhao to travel to his home in the United Arab Emirates. The judge acknowledged that this case is unusual, stating that Zhao’s enormous wealth and property abroad, along with his family residing in the UAE, make him a flight risk. Zhao pleaded guilty to violating federal money laundering rules, and Binance itself pleaded guilty to related charges and agreed to pay over $4.3 billion in financial penalties.
Prosecutors’ Arguments
Prosecutors argued that there was no combination of conditions that could guarantee Zhao’s return to the U.S., as there is no extradition treaty between the U.S. and the UAE. They pointed out that Zhao’s citizenship in the UAE indicates his favored position and highlighted that most of his bond is tied to assets outside of U.S. jurisdiction. Despite wiring $15 million in security and having three guarantors vouching for over $5 million in assets, the remaining amount of his bond is beyond the government’s reach.
Judge’s Ruling
Judge Jones considered Zhao’s arguments that he is not a flight risk due to his lack of criminal history and acceptance of responsibility for his actions. However, he emphasized that Zhao’s significant wealth and absence of an extradition treaty with the UAE were critical factors in the decision. The judge also noted that Zhao faces a potentially substantial sentence of up to 18 months in prison.
Hot Take: Binance Founder Restricted from Leaving US Ahead of Sentencing
Binance founder Changpeng Zhao, also known as CZ, has been prohibited from leaving the United States before his criminal sentencing. The judge’s ruling is based on Zhao’s substantial wealth and lack of ties to the U.S., which make him a flight risk. This decision comes after Zhao pleaded guilty to violating federal money laundering rules and Binance agreed to pay billions in financial penalties. The prosecutors argued that Zhao’s citizenship in the UAE and the majority of his bond being tied to assets outside of U.S. jurisdiction further support their concerns. While Zhao’s attorneys asserted that he is not a flight risk, the judge ultimately sided with the prosecutors due to the exceptional circumstances of the case.
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