The former CEO of Binance, Changpeng “CZ” Zhao, may find himself confined to the United States during the review process, as a judge has decided to halt a previous ruling that would have allowed him to return to the United Arab Emirates (UAE) while awaiting sentencing.
As of a November 27 filing in the U.S. District Court for the Western District of Washington at Seattle, Judge Richard Jones intervened to prevent CZ from traveling to the UAE, where he has family, until a court makes a decision on a motion for review submitted by the U.S. government.
CZ’s guilty plea on November 21 to one felony count, related to the failure to maintain an effective Anti-Money Laundering program during his tenure as Binance CEO and violating the U.S. Bank Secrecy Act, has placed restrictions on his movement. Although he has posted a $175 million bond and is currently free to travel within the U.S., his potential departure to the UAE is contingent on the court’s resolution of the government’s motion. Sentencing is anticipated in February 2024, with CZ facing a maximum of 18 months in prison under federal sentencing guidelines.
CZ’s resignation as CEO of Binance on November 21, part of a settlement with the U.S. Department of Justice, included a guilty plea to one felony charge and an agreement to pay $150 million in penalties. This settlement allowed the crypto exchange to evade additional charges, with the overall penalty reaching approximately $4.3 billion.
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