Binance’s Changpeng Zhao (CZ) Detained in US Pending Trial – BLOX

Changpeng Zhao, also known as CZ, is currently in the United States and cannot return to the United Arab Emirates (UAE) until his criminal case is resolved. The decision was made by a federal judge and follows his indictment for violating the Bank Secrecy Act.

The founder and former CEO of Binance was released on bail, but his Freedom of movement Limited due to the seriousness of the allegations.

BREAKING NEWS: CZ to remain in US pending sentencing

US District Judge Richard Jones has ruled that Binance founder Changpeng Zhao (CZ) cannot return to his home in the United Arab Emirates (UAE) before he is sentenced in the US, which will not be for at least six years. pic.twitter.com/5kD5psAZTn

— John Reed Stark (@JohnReedStark) December 8, 2023

A sentencing date was set for February 2024

A criminal trial against Changpeng Zhao is scheduled for February 2024. Earlier, CZ was released on bail but with restrictions. The bail amount is $175 million, of which $5 million worth of property is pledged as collateral. CZ was first allowed to return to his home country of the United Arab Emirates, where he lives with his family. However, the judiciary had other plans.

Prosecutors argued that Changpeng Zhao posed a flight risk, an argument the judge heard. The judge, District Judge Richard Jones of the Western District of Washington, noted CZ’s vast assets and the lack of an extradition treaty between the United States and the United Arab Emirates as grounds for detention in the United States. The judge pointed out that CZ’s family lives in the United Arab Emirates and there is no evidence that he has strong ties to the United States.

Imprisonment of up to 18 months is possible

There is still a lot of uncertainty surrounding Changpeng Zhao’s potential prison sentence. Although the judge indicated that CZ could only serve 10 months in prison, it could be 18 months depending on the final verdict.

All this comes as Changpeng Zhao pleaded guilty to charges related to anti-money laundering and money transfer regulations. That led to a $4 billion fine for Finance, of which he was CEO before stepping down.

This is a significant twist in the story of CZ, who resigned as CEO of Binance earlier this year. These legal developments have ramifications for the entire crypto market. CZ was once an influential figure in the crypto world, but now faces the prospect of prison. Until the moment of judgment, CZ’s case will be an important topic of discussion in the crypto community.