Judge States Changpeng Zhao Might Remain in the US Awaiting Court Review

Binance founder Changpeng “CZ” Zhao is mandated to stay in the United States temporarily while a federal judge reviews a U.S. Department of Justice request that would compel his presence in the country until his sentencing in the early part of next year. 

Last week, Zhao admitted guilt in breaching the Bank Secrecy Act and stepped down as CEO of Binance, the largest cryptocurrency exchange globally in terms of trade volume. Additionally, the exchange itself admitted guilt in violating sanctions and laws related to money transmission, agreeing to a $4.3 billion fine and agreeing to incorporate compliance monitors who will report directly to the U.S. government.

We did an article on that here.

As per a filing made on November 27 in the U.S. District Court for the Western District of Washington at Seattle, Judge Richard Jones halted a decision made by a magistrate judge that initially granted CZ the ability to go back to the United Arab Emirates (UAE), where his family resides. The judge mandated that CZ cannot travel to the UAE until the court addresses a motion for review submitted by the U.S. government.

Zhao’s legal team contended that his willingness to admit guilt by coming to the U.S. showed his commitment to taking responsibility. They highlighted the impracticality of relocating his wife and children temporarily solely for the sentencing phase.

The Department of Justice outlined a potential prison term ranging from a few months to a maximum of 10 years for Zhao. However, they clarified that Zhao retains the right to appeal any sentence exceeding 18 months. Additionally, as part of his plea agreement, he agreed to a $50 million fine.