Binance Founder Ordered To Stay Put In The US In Ongoing Probe
December 08 2023 - 11:00AM
NEWSBTC
Binance Co-founder and former Chief Executive Officer (CEO)
Changpeng CZ Zhao, has been confined to remain in the United States
in advance of his sentencing expected to take place next year.
Former Binance CEO No Longer Leaving The US The Binance co-founder
has been ordered by US District Judge Richard Jones to remain in
the country in a ruling on Thursday. Zhao was instructed to stay in
the US due to the significance of his recent guilty plea. The
ruling read: As relief, the government requests that Mr. Zhao be
required to remain in the continental United States in the period
between his plea and sentencing. The Thursday ruling reversed an
earlier decision that would have allowed Zhao to return to the
United Arab Emirates (UAE). Jones acknowledged in his decision the
arguments provided by Zhao, which ordinarily would result in the
government’s motion being denied. Related Reading: Crypto
Market Reacts: Binance CEO Changpeng Zhao Steps Down However, Jones
highlighted the distinctive features of Zhao’s case. These include
his riches, the absence of an extradition treaty with the UAE, and
Zhao’s family living in the UAE. Furthermore, the judge also
highlighted that Zhao poses a flight risk if he were allowed to
return to the UAE. This is due to the former CEO’s substantial
assets and the meager connections he has to the United States.
Additionally, knowing that the Binance ex-CEO faces a potential
18-month sentence in prison also sparks a possible flight risk.
Jones asserted that Zhao is asking for a lesser sentence, which
might lead to 18 months of incarceration as indicated by the
government. The judge stated that despite promises that CZ wouldn’t
flee if permitted to travel to the UAE, the court wasn’t convinced.
This led to the order that he should remain in the US until his
sentencing on February 23, 2024. So far, the court stated in the
ruling that its decision is not based on Zhao’s citizenship and
alienage. “The risk of the defendant not showing up is posed by the
circumstances surrounding their combined facts,” the court said.
Changpeng “CZ” Zhao’s Guilty Plea Last Month, the former Binance
CEO pleaded guilty and stepped down from the cryptocurrency
exchange he founded about 6 years ago. Zhao’s plea to one count of
violating the Bank Secrecy Act was formally accepted by Judge
Jones. Related Reading: Binance Compliance Officer Under Scrutiny
For FTX, Gemini, And Sex Trafficker Associations Jones accepted the
plea after a thorough consideration report and recommendation of
the United States Magistrate Judge which found him guilty. Jones
wrote: This Court, having considered the Report and Recommendation
of the United States Magistrate Judge, to which there has been no
timely objection, hereby accepts the plea of guilty of the
defendant. His plea was accepted just over two weeks after both he
and Binance acknowledged a number of criminal and civil charges.
These include failure to maintain an appropriate anti-money
laundering program, running an unlicensed money transfer business,
and violation of sanctions law. Featured image by Shutterstock,
chart by Tradingview.com
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