The judge orders Binance founder CZ must stay in the US until sentencing

A federal judge has ordered Changpeng Zhao who is the founder of Binance to remain in the United States until his sentencing in February citing concerns about the danger of flight if he returns to the United Arab Emirates (UAE). On December 7 Judge Richard Jones of the Seattle District Court granted an order allowing Zhao to remain in the United States until his sentencing on February 23, 2024. Zhao who pleaded guilty to money laundering on November 21, faces a maximum sentence of 18 months in prison and has agreed not to contest any sentence within that range.

Judge Jones highlighted the defendant’s immense foreign income and property as well as his lack of ties to the United States as factors contributing to the flight risk. The judge agreed with federal prosecutors’ argument that ensuring Zhao’s return would be difficult due to his substantial holdings abroad and privileged relatives in the UAE. The court determined that there was insufficient evidence by clear and compelling criteria that Zhao would flee if allowed to return to the UAE.

In supporting the government’s motion Judge Jones emphasized the defendant’s wealth and international connections, ultimately granting the request to keep Zhao within the continental United States between his plea and sentencing. Notably, the court approved Zhao’s existing $175 million bond, acknowledging that it consists largely of assets beyond the government’s immediate reach. In accepting the government’s request to hold Zhao within the continental United States between his plea and sentencing, Judge Jones emphasized the defendant’s riches and foreign connections.

Additionally, the court upheld Zhao’s current $175 million bail, even though it is mostly comprised of assets outside the government’s immediate reach. The bond standards allow Zhao to travel freely throughout the United States and have visits from his family which the judge judged to be least restrictive on the defendant’s freedom. Earlier this month  Binance and Zhao reached a deal with US regulators which is agreeing to pay $4.3 billion and admitting to running an illegal money-transmitting business in violation of the Bank Secrecy Act. As part of the agreement, Zhao stepped down as CEO of Binance.