Binance’s Zhao can’t return to UAE for Now, US judge says
BINANCE Holdings co-founder Changpeng Zhao can’t return to his home in the United Arab Emirates for now, a federal judge in Seattle ruled.
US District Judge Richard Jones on Monday put on hold a ruling granting the billionaire’s request to return to the UAE following his guilty plea last week to US criminal charges but before his Feb 23 sentencing. That order will remain in effect until Jones issues a decision on prosecutors’ motion to keep Zhao in the US through his sentencing.
The founder of the world’s largest cryptocurrency exchange pleaded guilty to failing to implement anti-money laundering policies and US sanctions violations as part of a broad agreement with the US government.
He agreed to post a bond of US$175 million, secured by US$15 million in cash held in trust, to guarantee his appearance for sentencing.
Zhao, who stepped down as Binance’s chief executive officer as part of the plea deal, theoretically faces as much as 10 years in prison but is expected to get no more than 18 months. Zhao also agreed to pay a US$50 million fine.
Binance itself also pleaded guilty and agreed to pay US$4.3 billion in penalties and forfeitures.
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Federal prosecutors last Wednesday asked Jones to reverse a magistrate judge’s decision to let Zhao return home on bail, saying there was a “substantial risk” that he wouldn’t return to the US because of his significant assets, ties to the UAE and the lack of an extradition agreement with the Persian Gulf state.
Zhao claims he is not a flight risk, noting that he voluntarily came to the US.
“Mr Zhao chose of his own free will to travel from his home in the UAE to voluntarily appear before this Court and accept responsibility for his actions,” his lawyers said in a response to the government’s motion, adding, “There would be no criminal or civil resolution in this matter but for Mr Zhao’s decision to so resolve and his voluntary choice to travel to Seattle to plead guilty.” BLOOMBERG
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