A U.S. federal judge has accepted the guilty plea of Binance founder Changpeng Zhao “CZ” on charges of money laundering, but has yet to make a decision on whether Zhao can leave the United States before his sentencing in February.
In a document filed on December 6 with the Seattle District Court, Judge Richard Jones acknowledged Zhao’s plea of guilty to a single count of violating the Bank Secrecy Act. This plea was part of Zhao’s submission on November 21, which coincided with Binance’s $4.3 billion settlement with U.S. authorities.
As a condition of the settlement, Zhao agreed to resign as CEO of Binance and to pay $150 million to regulatory bodies.
Judge Jones stated, “This Court, having considered the Report and Recommendation of the United States Magistrate Judge, to which there has been no timely objection […] accepts the plea of guilty of the defendant. The defendant is adjudged guilty of such offense.” Zhao’s sentencing is scheduled for February 23, 2024, and he could face up to 18 months in prison. He is currently out on a $175 million bond, which initially would have permitted him to return to the United Arab Emirates, where he lives.
However, U.S. federal prosecutors have challenged the idea of allowing Zhao to leave the country. They expressed concerns that they might not be able to ensure his return for sentencing, given that the UAE does not have an extradition treaty with the U.S. and Zhao could potentially choose to remain there indefinitely, given his wealth. “He has three young children and a partner in the UAE; once in the UAE and faced with the prospect of traveling back to the United States to face up to 18 months in prison, he may elect to instead simply stay in the UAE with his family,” the prosecutors argued.
Zhao has contested the restriction on his travel, asserting that he is not a flight risk and highlighting that he willingly traveled from the UAE to the U.S. to take responsibility for his actions.
On November 27, Judge Jones issued an order preventing Zhao from traveling to the UAE until the court reviews a motion from the U.S. government.
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