In a recent development, U.S. prosecutors have urged Changpeng ‘CZ’ Zhao, the former CEO of Binance, to stay within the country borders until his official sentencing date, expressing concerns over a “substantial risk of flight.”
Reports from Decrypt indicate that the court’s filing reveals the prosecutors’ unwillingness for Zhao to return to the United Arab Emirates (UAE) before his sentencing on February 23, 2024, due to significant flight risk.
As a result of an agreement with the U.S. Department of Justice (DOJ), Zhao admitted to contravening the Bank Secrecy Act and subsequently resigned from his role as CEO of Binance. As per this settlement, Zhao is barred from assuming any executive role in Binance for at least three years following the placement of an independent monitor, although he still maintains majority ownership of the firm.
Following his plea, Zhao was detained but later released on a $175 million bond. The prosecutors contend that Zhao, a UAE citizen with significant wealth outside the U.S., is a flight risk due to his limited connections to the U.S. and residence in a country that lacks an extradition treaty with the U.S.
A DOJ representative previously told Reuters that Zhao would stay in the Seattle area until Monday night but would be permitted to return to the UAE afterward.
Zhao’s exit from Binance is part of a settlement that will lead to Binance retreating from the U.S. market and paying $4.3 billion in fines for violations related to anti-money laundering and sanctions. Richard Teng, the former Global Head of Regional Markets, is set to take over as CEO of Binance, which will continue its operations outside of the U.S.