A federal judge in Seattle has issued a ruling requiring Changpeng Zhao, the founder and former CEO of Binance, to stay in the United States until his sentencing on money laundering charges. This decision overturns a previous ruling that permitted Zhao to return to the UAE until his scheduled February sentencing.
U.S. District Judge Richard Jones, while acknowledging the unusual step of overturning a magistrate judge’s decision, cited concerns over Zhao being a flight risk as presented by the Justice Department. Despite a substantial $175 million bond, Judge Jones expressed worry that Zhao’s significant overseas wealth might incentivize him to forfeit the bond for his freedom.
The government’s apprehension is rooted in Zhao’s extensive wealth held abroad and his potential access to substantial cryptocurrency funds. Zhao faces a maximum 18-month prison sentence related to money laundering charges, accusing Binance of neglecting criminal transactions on its platforms.
Despite Binance recently agreeing to a historic $4 billion settlement for these charges, with Zhao personally settling for $50 million, concerns over his potential flight risk persist. Judge Jones noted Zhao’s Canadian citizenship and an unverified claim that he was offered citizenship by the UAE, intensifying worries about extradition.
While recognizing Zhao as not posing a danger to the community, Judge Jones allowed him to remain free until February, on the condition that he stays within the continental United States.
