A federal judge has issued an order preventing former Binance CEO Changpeng Zhao (CZ) from departing the United States until a decision is reached regarding the U.S. government’s request to block his return to the United Arab Emirates (UAE) prior to sentencing. This move comes in response to a release order granted by a magistrate judge, permitting CZ to return to the UAE during the pre-sentencing period.
The order, signed by District Judge Richard A. Jones on Monday, emphasizes the court’s intention to review the decision made by Magistrate Judge Brian A. Tsuchida, allowing CZ to go back to the UAE under the conditions of his appearance bond. The current order puts a stay on the provision permitting CZ to return to the UAE until the court resolves the government’s motion for review.
Last week, CZ pleaded guilty to the charge of failing to maintain an effective anti-money laundering program and resigned from his position as the CEO of the world’s largest cryptocurrency exchange. Simultaneously, the government filed charges against Binance for non-compliance with the Bank Secrecy Act and U.S. sanctions law.
As part of the settlements with various U.S. authorities, Binance and CZ are set to pay a historic sum exceeding $4.3 billion. Magistrate Judge Tsuchida’s release order allowed CZ to return to the UAE under specified bail conditions while awaiting sentencing. However, the U.S. government filed a motion to prevent CZ from returning home before sentencing.
In response, CZ has contested the government’s motion, asserting that Judge Tsuchida had already determined he posed no flight risk, having voluntarily appeared in court, taken responsibility, and pleaded guilty.
The U.S. government’s motion indicates that the former Binance CEO could face up to 18 months in prison. The bail conditions set by Magistrate Judge Tsuchida require CZ to post a $175 million personal recognizance bond, secured by two guarantors with cash pledges of $100,000 and $250,000, along with a third guarantor offering real property in Los Angeles valued at more than $5 million, as described by CZ’s legal team.
The ongoing debate prompts consideration of whether CZ should be allowed to leave the U.S. and return to the UAE while awaiting sentencing, a matter open to discussion in the comments section below.
