Binance founder Changpeng Zhao has been directed by a federal judge to stay within the United States until his sentencing in February. This order follows the ruling that allowing the former CEO of the exchange to return to the United Arab Emirates could pose a significant flight risk.
Seattle District Court Judge Richard Jones, on December 7, mandated that Zhao remain in the United States until his sentencing on February 23, 2024. Having pleaded guilty to money laundering charges on November 21, Zhao faces a potential prison term of up to 18 months, having agreed not to appeal any maximum sentence that may be imposed.
Judge Jones highlighted the substantial foreign wealth and property held by Zhao, coupled with a lack of connections to the United States, as a key factor in the decision. He echoed federal prosecutors' concerns, stating that they would struggle to ensure Zhao's return to the U.S. if he decided otherwise. The judge noted Zhao's family residence in the UAE and his apparent favorable status there, casting doubt on Zhao's potential escape if he were to return to Dubai.
The court approved the guilty plea submitted by Zhao on December 6, yet a verdict regarding his return to Dubai, his current place of residence, remains pending. Zhao's current bail includes holdings worth $175 million, primarily consisting of assets beyond the government's control, as stated by Judge Jones.
While Zhao is permitted to move freely within the United States under the bail conditions, the judge pointed out that this arrangement does not significantly restrict his freedom, allowing for visits from his family. In prior developments, Binance and Zhao settled with U.S. regulators for $4.3 billion in November, acknowledging their operation of an unlicensed money transfer business and breaches of the Bank Secrecy Act. Subsequently, Zhao stepped down from his role as CEO as part of the settlement.
