Binance Founder Zhao Pleads Guilty to Money Laundering, Uncertainty Looms Over Exit from US
Summary:
The founder of Binance, Changpang "CZ" Zhao, has had his guilty plea for money laundering accepted by a federal judge, but there's uncertainty over whether he can exit the US before his February sentencing. As part of a $4.3 billion settlement with the U.S, Zhao resigned as Binance CEO and paid regulators $150 million. Currently out on a $175 million bond, Zhao, who faces up to 18 months in prison, has an option to go back to the UAE, his country of residence. However, American federal prosecutors are disputing his departure, arguing that his return can't be assured due to the UAE's lack of an extradition treaty. Zhao's sentencing date is February 23 next year.
The founder of Binance, Changpang "CZ" Zhao, had his guilty plea concerning money laundering accepted by a federal judge, but the judge remains undecided as to whether he can leave the USA before his sentencing in February. On December 6, a document was submitted to the Seattle District Court. In it, Judge Richard Jones indicated his acceptance of Zhao’s admission of guilt to a single count of Bank Secrecy Act violations, which Zhao confessed to on November 21 as part of a settlement involving his exchange and a sum of $4.3 billion with the US. Zhao agreed to resign his CEO position at Binance as part of the settlement and paid a sum of $150 million to various regulatory bodies. Presently out on bond valued at $175 million, Zhao, due for sentencing on February 23 of next year, faces a possible 18 month prison term. His bond allows him the option to go back to the United Arab Emirates, which is his place of residence. Federal prosecutors objected to Zhao leaving America, saying that his return can't be guaranteed if he chooses not to come back, considering UAE doesn't have an extradition treaty and Zhao is wealthy enough to live there comfortably. Prosecutors noted that Zhao, a father of three, and his partner reside in the UAE. He may opt to remain in the UAE with his family once he's there, instead of risking an 18 month prison term by coming back to the US, they said.
Published At
12/7/2023 1:53:09 AM
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