Binance: CZ under house arrest in the USA until the final verdict in February

CZ will ultimately remain in the United States. Judge Richard Jones ruled Thursday that the Binance founder must remain on American soil until his sentencing in February on money laundering charges.

CZ will ultimately remain in the USA while awaiting the final verdict in February

The founder of Binance will have to remain on American soil while awaiting his sentencing in February for money laundering. This is what Judge Richard Jones decided on Thursday, reversing a previous decision which authorized Changpeng Zhao to temporarily return home to the United Arab Emirates.

The magistrate’s decision follows the urgent request of federal prosecutors, who believe that the Chinese-Canadian billionaire represents a serious flight risk because of his enormous assets abroad. “ The defendant owns enormous wealth and property abroad, and has no ties to the United States” , has explain Judge Jones to justify his decision.

However, CZ had already demonstrated his willingness to cooperate by pleading guilty last month. His lawyers also downplayed fears of flight, stressing that their client had turned himself in and admitted his wrongdoing.

But for the magistrate, the risk remains too high given the $175 million already posted by Zhao as bail. Especially since his family resides in the Emirates, a country with which the United States does not have an extradition agreement.

Forced stay of the boss of Binance under the legal microscope

Judge Jones’ decision is only temporary. It aims to keep CZ in the United States pending a hearing on February 23, when his sentence will be determined following his guilty plea.

The former CEO of Binance theoretically risks up to 18 months in prison according to federal recommendations. However, this sentence could be revised downwards given his cooperation, with prosecutors citing instead a firm ten months.

In any case, Changpeng Zhao will not be able to leave American territory until then, contrary to what the judge decided during a previous hearing.

This represents a new blow for the billionaire, already forced to resign from his position as CEO of Binance. Its platform is the subject of multiple investigations across the Atlantic for non-compliance with anti-money laundering rules, which earned it a record fine of $4.3 billion.

American justice intends to establish the personal responsibility of the director of Binance in these failings. A very heavy sword of Damocles above the billionaire’s head.

Maximize your experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.

Similar Posts