The trial of Changpeng Zhao (CZ) took place on November 22, 2023. Federal Judge Alison Nathan recognized that there was a risk of flight. But she ultimately decided to allow Zhao to stay in the UAE based on his previous actions and his stated intentions to resolve the case. Zhao, former CEO of Binance, will have to return to the United States 14 days before his sentencing.
Zhao allowed to reside in the USA while awaiting sentence
CZ’s arrest took place in July 2023, at the request of the United States. He currently finds himself facing four countsof which :
- electronic fraud,
- conspiracy to commit electronic fraud,
- violation of securities law.
According to US prosecutors, CZ (along with other Binance executives) set up a crypto trading platform that does not comply with US laws.
During the November 21 hearing, Zhao declared to Judge Nathan that he wanted to “close the case”. “I’ve never been to prison before and I’m a little scared to come to the United States”he maintains while adding that he had no intention of fleeing.
Impressed by the attitude of the former Binance CEO, Judge Nathan said: “CZ had no obligation to come to the United States, but he did. He would be more likely to show up for his trial if he were allowed to stay in the UAE. »
Binance affair and CZ trial: What impact on the crypto market?
Judge Nathan’s decision could have a potential impact on the crypto industry. Notably, it shows that US courts are willing to allow people accused of crypto-related crimes to remain in their home countries.
However, Zhao has not yet been convicted of the charges against him. He nevertheless incurs a sentenced to prison. Which would also negatively impact the crypto market.
Regardless, Judge Nathan’s decision remains an important development in the Binance case. To be continued !
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