Binance Founder CZ Ordered to Stay in U.S. Until Sentencing

Changpeng “CZ” Zhao, the founder of Binance, has been mandated by a Seattle district court judge, Richard Jones, to remain in the United States until his sentencing on February 23, 2024. The order stems from concerns about a potential flight risk if Zhao were to return to the United Arab Emirates (UAE), where he resides. Having pleaded guilty to money laundering on November 21, Zhao faces a maximum sentence of 18 months and has committed to not appealing any sentence within that range.

Judge Jones cited the significant wealth and property Zhao possesses abroad, combined with a lack of ties to the U.S., as contributing factors to the flight risk. Emphasizing that Zhao’s family resides in the UAE and he holds a privileged status there, the judge agreed with federal prosecutors who argued they might not secure his return if he were to leave the U.S.

The court’s decision, outlined in a December 7 order, stated, “the defendant has not established by clear and convincing evidence that he is not likely to flee if he returns to the UAE.” As a result, the court granted the government’s motion to keep Zhao within the continental United States during the period between his plea and sentencing.

Judge Jones had previously accepted Zhao’s guilty plea on December 6, following the settlement between Binance and Zhao with U.S. regulators for $4.3 billion in November. The settlement acknowledged Binance’s operation of an unlicensed money-transmitting business and violations of the Bank Secrecy Act. As part of the settlement, Zhao stepped down as CEO. Currently on a $175 million bond, which Judge Jones noted as being largely composed of assets beyond the government’s reach, Zhao is allowed freedom of movement within the U.S., and his family can visit him, conditions deemed “hardly burdensome impositions on the defendant’s freedom.”