Changpeng Zhao, the ex-CEO of Binance, the globe’s foremost cryptocurrency exchange, has been instructed to remain on US soil as per a federal judge’s recent directive. Zhao, who has admitted to charges related to lapses in anti-money laundering protocols, is now bound to stay stateside pending a judicial review slated for February.
The decision comes in the wake of Zhao’s voluntary resignation from his leadership role at Binance and his guilty plea, which has led to a stringent bail bond set at a hefty $175 million. Despite relinquishing his position and facing the prospect of an 18-month prison sentence, Zhao has assured his cooperation, stating, “I made mistakes, and I must take responsibility.”
While Binance Holdings has conceded to a staggering $4.3 billion settlement over violations of US laws, the firm asserts its commitment to bolstering security measures. As the legal proceedings continue, the spotlight remains on Zhao, who holds dual citizenship in Canada and the UAE. His legal team advocates for his low flight risk, given his substantial bail contribution and proactive engagement with US authorities.
The government’s stance is cautious, highlighting the absence of an extradition treaty with the UAE, which could complicate Zhao’s mandated return for sentencing. As the case unfolds, all eyes are on the Seattle court’s forthcoming decision, which will determine the scope of Zhao’s movements until his sentencing hearing on February 23.
