A federal judge has approved Binance founder Changpeng Zhao's admission of guilt in connection to money laundering charges but is yet to decide whether he can depart the United States before his scheduled sentencing in February.
In a filing dated December 6 at the U.S. District Court in Seattle, Judge Richard Jones acknowledged Zhao's guilty plea to violating the Bank Secrecy Act, an offense committed in November. Zhao entered his plea on the 21st of that month, concurrently reaching a $4.3 billion settlement agreement with American financial entities linked to Binance. The settlement led to Zhao stepping down as Binance CEO and paying a $150 million fine to regulators. Judge Jones confirmed the acceptance of Zhao's guilty plea after reviewing the report and recommendations from the U.S. Magistrate Judge.
Zhao is set to receive sentencing on February 23, 2024, facing a potential prison term of up to 18 months. Presently, he is free on a $175 million bail, which permits him to return to his residence in the United Arab Emirates (UAE).
However, federal prosecutors opposed Zhao's departure from the U.S., expressing concerns that without an extradition treaty between the U.S. and the UAE, Zhao might choose not to return, leveraging his wealth to remain in the UAE indefinitely. Prosecutors cited his familial ties and potential decisions based on the prospect of facing imprisonment in the U.S.
Zhao refuted the travel restrictions, asserting that he presented no flight risk and took accountability for his actions by voluntarily flying from the UAE to the United States. On November 27, Judge Jones issued an order barring Zhao from traveling to the UAE until the court reviews the U.S. government's motion for reconsideration.
