Binance founder and former CEO Changpeng Zhao will not be able to return to the United Arab Emirates

The sentencing process for Zhao, who was found guilty of violating the Bank Secrecy Act last month, will begin in February 2024. The former CEO, who was released on a $175 million personal recognizance bond, deposited a sum of cash in escrow and had guarantors provide assets worth approximately $5 million as collateral.

While Zhao's bail initially allowed him to return to the UAE, where he, his children, and his wife reside, prosecutors argued that this posed a flight risk and that he should not be permitted to leave the US. After US District Judge Richard Jones of the Western District of Washington agreed with the Department of Justice, it was decided that he would not be allowed to leave the US.

The judge stated the following in the ruling:

“The defendant has raised arguments that would, in most cases, result in the denial of the government's request. A critical feature of the government's request is the size of the defendant's wealth and the lack of an extradition treaty with the UAE. In addition, the defendant's family resides in the UAE, and there is no indication that he has any other ties to the US. Although the defendant has stated that he will request a lesser sentence, the government has indicated that it may seek a prison sentence of up to 18 months. Consequently, the defendant is not facing a trivial sentence.”

The judge, who accepted the plea agreement earlier this week, noted that Zhao could face up to 18 months in prison, but could serve as little as 10 months.

Zhao resigned from Binance last month after pleading guilty to violating anti-money laundering and money transmission rules at the global crypto exchange. As part of its own plea agreement, Binance agreed to pay a $4.3 billion fine.

News Source: 12punto