JUST IN: Judge Says Former Binance CEO Changpeng Zhao Can’t Leave US Before Sentencing

Changpeng Zhao, the former CEO of cryptocurrency exchange Binance, was preparing to return to the United Arab Emirates, where his wife and children live, but a district judge halted that part of his bail for now.

CZ will continue to stay in the United States at least until his sentence is announced.

The proposal requests that Zhao remain in the country until his sentencing in early 2024. Last week, Zhao pleaded guilty to violating the Bank Secrecy Act and subsequently resigned as CEO of Binance, the world’s largest cryptocurrency exchange by volume. Binance itself pleaded guilty to charges of violating sanctions and money transfer laws.

After Zhao pleaded guilty, a magistrate judge ordered his release on a $175 million personal recognizance bond. Zhao deposited $15 million into a trust account, and three guarantors secured the bail with over $5 million in collateral. Under the terms of his bail, Zhao was free to return to the United Arab Emirates (UAE), where his wife and children reside. But District Judge Richard Jones stayed that part of the decision today.

The Justice Department moved to keep Zhao in the United States, arguing that he could be a flight risk if he left the country. Noting that Zhao still has a large amount of wealth, officials pointed out that there is no extradition agreement between the USA and the UAE. However, they are not pushing for Zhao to be imprisoned before his sentencing on February 23, 2024.

Zhao’s legal team argued that Zhao had already demonstrated his intention to take responsibility by voluntarily coming to the United States to plead guilty. They also stated that his wife and children cannot be moved just for the sake of sentencing.

The Justice Department stated that Zhao could be sentenced to several months to 10 years in prison, but Zhao had the right to appeal any sentence longer than 18 months.

*This is not investment advice.