Binance's CZ Caught In Stateside Limbo: Potential Prison Sentence Hangs In The Balance

Changpeng Zhao, the founder of cryptocurrency giant Binance, is currently required to stay in the United States as a federal judge deliberates over a motion from the U.S. Department of Justice.

This motion insists that Zhao should remain in the U.S. until his sentencing, which is expected early next year.

Zhao recently admitted to breaching the Bank Secrecy Act and consequently stepped down from his role as CEO of Binance, the world’s top crypto exchange by trading volume.

In a related development, Binance itself confessed to breaching sanctions and money transmission laws, consenting to pay a hefty fine of $4.3 billion.

Additionally, the company agreed to install compliance monitors who will provide reports to the U.S. government.

Following Zhao’s guilty plea, he was released on a personal recognizance bond of $175 million.

To secure this bond, Zhao deposited $15 million into a trust account and obtained over $5 million in collateral from three guarantors.

Initially, the bond’s terms allowed Zhao to return to the UAE, where his family lives. However, District Judge Richard Jones has since put a hold on this part of the bond agreement.

The U.S. Department of Justice’s lawyers have argued against Zhao leaving the U.S., citing concerns over him being a potential flight risk.

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They pointed out his significant wealth and the lack of an extradition treaty between the U.S. and the UAE.

However, they are not advocating for his imprisonment prior to his sentencing scheduled for Feb. 23, 2024.

Zhao’s legal team has contended that he has shown a commitment to accountability by voluntarily coming to the U.S. to enter his guilty plea.

They mentioned that his family, residing in the UAE, would find it challenging to relocate to the U.S. for a few months just for the sentencing.

Zhao potentially faces a prison sentence ranging from a few months to a maximum of 10 years, as per the DOJ.

However, he holds the right to appeal any sentence that exceeds 18 months.

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Photo: Web Summit on Flickr