Former Binance chief, Changpeng Zhao, has been ordered to remain in the United States by a federal judge after pleading guilty to violating U.S. anti-money laundering laws. The founder of the world’s largest cryptocurrency exchange will stay in the U.S. until a Seattle court decides whether he should remain until his sentencing hearing in February or be allowed to return to the United Arab Emirates, of which he is a citizen.
Zhao, also a Canadian citizen, resigned as CEO of Binance last week after pleading guilty to willfully causing the exchange to fail in maintaining an effective anti-money laundering program. U.S. District Judge Richard Jones in Seattle will review whether Zhao should stay in the United States after the U.S. government appealed a decision allowing him to return to the UAE before his sentencing hearing on February 23. Zhao agreed to a $175 million bond as part of his bail agreement.
Binance Holdings, the cryptocurrency exchange, agreed to pay over $4.3 billion and pleaded guilty to breaking U.S. anti-money laundering and sanctions laws. Binance stated that it has worked to enhance the company’s safety and security. Zhao acknowledged his mistakes and expressed his commitment to taking responsibility.
Zhao faces a maximum prison sentence of 18 months under federal guidelines and has agreed not to appeal any sentence up to that length. Prosecutors will determine the jail time they seek closer to Zhao’s sentencing. The U.S. government had expressed difficulty securing Zhao’s return, given the absence of an extradition treaty with the UAE. Zhao’s lawyers argued that he was not a flight risk, pointing to the substantial bail package and voluntary acceptance of responsibility by coming to the U.S.