CZ Must Stay in the US for Sentencing
A US judge has ordered former Binance CEO Changpeng Zhao (CZ) to remain in the United States until his sentencing in February 2024. This comes as CZ faces charges related to anti-money laundering violations. Seattle district court Judge Richard Jones ruled that CZ poses a serious flight risk if allowed to return to the United Arab Emirates (UAE), where he resides with his family.
Judge Reverses Previous Ruling
Judge Jones’ ruling reverses a previous decision that allowed CZ to return to the UAE until his sentencing. The judge stated that CZ’s significant wealth abroad and the absence of an extradition treaty between the US and the UAE make him too much of a flight risk. Jones emphasized that CZ’s family and favored status in the UAE indicate a likelihood of fleeing if he were to return.
Terms of Bond Allow Travel Within the US
Despite Zhao’s lawyers arguing that his cooperation and willingness to travel to the US should mitigate flight risk concerns, Judge Jones disagreed. CZ entered a guilty plea to money laundering and agreed not to contest a potential sentence of up to 18 months. He is currently on a $175 million bond, which Jones believes consists mostly of assets beyond the government’s reach. The terms of Zhao’s bond allegedly allow him to travel within the US and receive visits from his family.
Binance Investigations and Settlement
The ruling comes amid ongoing investigations into Binance, which revealed failures in implementing proper anti-money laundering measures and facilitating illegal transactions. Last month, Binance reached a $4.3 billion settlement with US prosecutors. As part of the settlement, CZ resigned from his position at the exchange and will not hold any role there for the next three years.
Hot Take: CZ Faces Flight Risk Concerns
A US judge has ordered former Binance CEO Changpeng Zhao (CZ) to remain in the United States until his sentencing in February 2024. The judge believes CZ poses a serious flight risk if allowed to return to the UAE, where he resides with his family. This ruling reverses a previous decision and highlights concerns about CZ’s significant wealth abroad and the absence of an extradition treaty between the US and the UAE. Despite CZ’s cooperation and guilty plea, the terms of his bond allow him to travel within the US. The ruling follows investigations into Binance’s anti-money laundering practices and the exchange’s recent settlement with US prosecutors.
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