Judge Rejects Binance Founder’s Request to Return to the UAE

Judge Richard Jones of the United States District Court for the Western District of Washington outrightly rejected Binance’s former CEO’s plea to return to the United Arab Emirates before his sentencing.

There had been an initial ruling which stated that Changpeng ‘CZ’ Zhao could not return to the UAE until the request was reviewed. The review did not make a difference as the judge pronounced the ruling on Thursday.

CZ is to Appear in Court by February 

His sentence hearing is still scheduled to be held in February. The Binance founder allegedly violated and caused a financial institution to violate the Bank Secrecy Act. CZ has agreed to pay a $50 million fine. 

It is not yet clear how many years in prison CZ will get but theoretically, there is a possibility that he could face up to 18 months in prison, according to the U.S. sentencing guidelines which was expounded by former U.S. SEC official John Reed Stark.

Binance CEO Quit Amidst $4.3B Settlement 

CZ quit his position as Binance CEO in November after which he agreed to plead guilty to violating U.S. anti-money laundering laws. He regarded the decision to plead guilty as “the best for our community, for Binance, and myself.” This was right in the middle of his cryptocurrency exchange reaching a $4.3 billion settlement with the United States Department of Justice (DOJ).

Immediately, Binance’s Global Head for Regional Markets Richard Teng was appointed as the new CEO. Notably, CZ’s guilty plea has been accepted by Judge Jones.

CZ Presents Flight Risk

Since his sentence hearing was slated for February 2024, CZ requested to return to the UAE. His defense team approached the U.S. District Court on the matter citing that he posed no flight risk as he would return to the U.S. when it was eventually time for his hearing. Zhao’s lawyers also mentioned that he has strong family ties in the UAE.

The court however did not consent to the request, instead, the prosecutors insisted that CZ presented a flight risk. Furthermore, they pointed to his wealth and the fact that the UAE has no extradition treaty with the United States. However, a review clause was added and the latest ruling is a product of the review.