Binance founder Changpeng Zhao also know as ‘CZ’ has been directed to remain temporarily in the United States while a federal judge reviews a U.S. Department of Justice request that would require his presence in the country until his sentencing in the early part of the following year.
Last week, Zhao acknowledged breaching the Bank Secrecy Act and stepped down as CEO of Binance, the largest cryptocurrency exchange globally in terms of trade volume. Moreover, the exchange itself admitted guilt in violating sanctions and laws concerning money transmission, agreeing to a $4.3 billion fine and incorporating compliance monitors reporting directly to the U.S. government.
An article discussing this development is available here.
According to a filing made on November 27 in the U.S. District Court for the Western District of Washington at Seattle, Judge Richard Jones suspended a decision by a magistrate judge that had initially permitted CZ to return to the United Arab Emirates (UAE), where his family resides. The judge ruled that CZ cannot travel to the UAE until the court addresses a motion for review submitted by the U.S. government.
Changepeng Zhao’s legal team argued that his willingness to admit guilt by coming to the U.S. demonstrated his commitment to taking responsibility. They emphasized the impracticality of relocating his wife and children temporarily solely for the sentencing phase.
The Department of Justice outlined a potential prison term ranging from a few months to a maximum of 10 years for Zhao. However, they clarified that Changpeng Zhao retains the right to appeal any sentence exceeding 18 months. Additionally, as part of his plea agreement, he consented to a $50 million fine.
