Zhao Changpeng had planned to return to the United Arab Emirates, where his wife and children live, but a district judge has temporarily blocked that portion of his bail release.Binance founder Changpeng Zhao (CZ) must stay in the United States, at least for now, as a federal judge considers a motion by the U.S. Department of Justice that would require him to remain in the country until he is sentenced early next year.
Zhao Changpeng pleaded guilty last week to violating the Bank Secrecy Act and resigned as CEO of Binance, the world's largest cryptocurrency exchange by trading volume. The exchange itself pleaded guilty to charges of violating sanctions and money transmission laws, agreed to pay a $4.3 billion fine and embed compliance monitors who can report to the U.S. government. After Zhao Changpeng pleaded guilty, a judge approved his release on a $175 million personal bond. Zhao Changpeng deposited $15 million into a trust account and had three sureties post more than $5 million in collateral to secure the bail. Under the conditions of his bail release, he is free to return to the United Arab Emirates, where his wife and children live. On Monday, District Judge Richard Jones temporarily suspended parts of the ruling.
However, U.S. Justice Department lawyers filed a request to keep Zhao Changpeng in the U.S., arguing that he could pose a flight risk if he leaves the country, noting that he still has a large fortune and that there is no extradition treaty between the U.S. and the UAE. They did not push to keep him in prison before sentencing on Feb. 23, 2024. Judge Jones did not indicate at Monday's hearing whether he would schedule a hearing or when he might rule on the motion.
Zhao’s lawyers argued that he had proven himself by his willingness to come to the U.S. for the first time to acknowledge responsibility. They said it was impossible for his wife and children to relocate just to serve a few months in prison.
The U.S. Department of Justice said Zhao Changpeng could face anywhere from a few months to 10 years in prison, though he can appeal the sentence if it's longer than 18 months. He also agreed to pay a $50 million fine as part of the plea agreement.