Changpeng Zhao to Remain In the US as Judge Denies Motion
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Changpeng “CZ” Zhao, the former CEO of the Binance cryptocurrency exchange, has been barred from leaving the United States by a federal judge. Zhao will have to remain in the US until his sentence hearing.
Judge Richard Jones of the US District Court ruled on December 29. The ruling follows a second motion by Zhao seeking court approval to leave the US.
Changpeng Zhao Barred From Leaving the US
Little is known about the details of the second motion. According to Zhao’s legal team, the request involves “medical information regarding Mr. Zhao’s child.”
The second ruling follows an earlier decision on December 7, where Judge Jones ordered Zhao to remain in the US. The judge denied Zhao’s request to go abroad, saying he was a flight risk.
Zhao pled guilty to one felony count in a $4.3 billion agreement with authorities in the United States. His sentencing is set for February 2024, and he faces up to 18 months in prison.
The Department of Justice argued that Zhao’s financial muscle and the lack of an extradition treaty between the US and the UAE was a flight risk.
Zhao posted a $175 million bond in the US. He is among the richest crypto founders, with his wealth increasing by nearly $25 billion in 2023 alone.
Zhao’s Attorneys Defend Him
Zhao’s attorneys have asserted that he is not a flight risk as determined by the courts. They have also said that the government has not shared any tangible evidence on why Zhao is termed a flight risk given his positive track record.
The defense has also suggested that Zhao served part of his prison sentence within a non-jail setting. They have also said that Zhao’s family and UAE residence should not be used to term him a flight risk.
The defense also says that Zhao is willing to face the consequences of his actions as he already surrendered himself to US authorities during the settlement hearing.
The defense argued that Zhao surrendered himself to US authorities voluntarily and he would do so again during the sentencing hearing. Therefore, there is no need for the US courts to deny him permission to go abroad on the grounds of the US-UAE extradition treaty.
The defense also referred to the $175 million bond with guarantor pledges, saying that the guarantors would not agree to sign it were Zhao a flight risk. These factors show evidence of his commitment to comply with the requirements of the US courts.
