Court Rules Binance’s CZ Should Stay In US Until Sentencing

Changpeng Zhao (CZ), founder and former CEO of global crypto exchange platform Binance, is stuck in the U.S. until his sentencing in February 2024 after he pleaded guilty to one charge of violating the Bank Secrecy Act last month.

District Judge Richard Jones of the Western District of Washington sided with the Department of Justice (DOJ) on Thursday and decided to grant its motion, noting that “based on the foregoing reason, the Court GRANTS the government’s motion, and the defendant shall remain in the continental United States during the period between his plea and sentencing.”

The judge said the court agrees with the DOJ’s claim that the case of Zhao, also known as CZ in the crypto space, is an unusual one, given the crypto mogul’s wealth, connections and properties abroad and absence of ties to the U.S.

“The court agrees with the government that this is an unusual case. The defendant has enormous wealth and property abroad, and no ties to the United States. His family resides in the UAE and it appears that he has favored status in the UAE,” the judge’s decision read.

Jones also said Zhao’s camp failed to establish clear and convincing evidence that he would not flee if allowed to return to his residence in the United Arab Emirates (UAE), adding that his family is welcome to visit him in the U.S.

“Under the circumstances, the court finds that the defendant has not established by clear and convincing evidence that he is not likely to flee if he returns to the UAE. The bond conditions allow the defendant to remain free and travel within the United States, and his family is free to visit him in the United States. These are hardly burdensome impositions on the defendants, freedom pending sentencing,” the judge said.

Former SEC Office of Internet chief John Reed Stark, a vocal anti-crypto advocate, agreed with the judge’s decision, saying, “Judge Jones is spot-on. CZ’s crimes are not regulatory parking tickets but are tantamount to mass murder and mayhem, and his wealth and special ‘granted’ citizenship in a non-extraditing country like the UAE render CZ a legitimate flight risk.”

“As CEO of Binance, Zhao willfully enabled a litany of horrendous crimes and gruesome acts of terrorism — and he should remain in the U.S. until he is ordered to face the consequences,” he added.

Last month, Zhao pleaded guilty to one charge of violating the Bank Secrecy Act and was released on a $175 million personal recognizance bond, with some cash on escrow and some guarantors putting up 5 million worth of assets as collateral.

He was initially allowed to return to UAE and come back to the U.S. weeks before his sentencing, but it was later appealed by the DOJ, describing the embattled crypto mogul as a flight risk who should not be allowed to leave the country.