Binance founder Changpeng “CZ” Zhao has been denied his request to return to the United Arab Emirates (UAE) until his sentencing date in February 2024. A federal judge in Seattle ruled that Zhao poses a high flight risk and ordered him to stay in the United States.
Zhao pleaded guilty to money laundering charges on Nov. 21, admitting that he operated an unlicensed money-transmitting business and violated the Bank Secrecy Act. He agreed not to appeal any sentence of up to 18 months in prison, which is the maximum penalty he faces.
According to the court documents, Zhao has “enormous wealth and property abroad, and no ties to the United States,” His family lives in the UAE, and he has “favored status” in the country. The judge said that the government would not be able to secure his return if he decided to flee.
In the UAE, his family lives, and it seems that he receives special treatment. Considering this, Judge Richard Jones concluded that the defendant hasn’t proven with strong evidence that he won’t flee if he goes back to the UAE.
Based on the foregoing reason, the Court GRANTS the government’s motion, and the defendant shall remain in the continental United States during the period between his plea and sentencing, said Judge Jones.
Binance Settles With US Regulators For $4.3 Billion
The money laundering charges against Zhao were part of a larger settlement between Binance and US regulators, including the Department of Justice, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.
Binance agreed to pay $4.3 billion in fines and forfeitures and to cooperate with the authorities in ongoing investigations. Binance also admitted failing to implement adequate anti-money laundering and counter-terrorism financing policies and procedures and allowed US customers to trade on its platform without proper registration and oversight.
As part of the settlement, Zhao stepped down as CEO of Binance and transferred his ownership stake to a trust. He also agreed to cooperate with the appointment of a monitor to oversee Binance’s compliance with US laws and regulations.
Binance is one of the largest cryptocurrency exchanges in the world, with a daily trading volume of over $20 billion. The company has faced regulatory scrutiny and pressure from several countries, including the UK, Japan, Germany, and Singapore, over its operations and compliance.
The settlement with the US regulators was seen as a major step for Binance to resolve its legal troubles and improve its reputation in the global crypto industry. However, Zhao’s guilty plea and potential prison sentence could cast a shadow over the company’s future.
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