The judge has ordered that CZ, the founder of Binance, stay in the country (United States) until his prison term is completed.
A federal judge ruled Monday that Binance founder Changpeng Zhao, who pleaded guilty last week to criminal charges related to his cryptocurrency exchange, must remain in the United States at least temporarily.
The Jury
Zhao was freed last week on $175 million bail and has a sentencing hearing on Feb. 23. Prosecutors urged that Zhao be prevented from leaving the country before his sentence, but his attorneys argued that he be allowed to travel, saying in a briefing that he “voluntarily flew” to the United States for his guilty plea.
Zhao now resides in the United Arab Emirates, which does not have a formal extradition relationship with the United States. According to Richard Jones, a U.S. District Court Judge in Seattle, Zhao cannot return to the UAE “until such time as this Court resolves the Government’s motion for review.”
“In the vast majority of cases, a multi-billionaire defendant who has pleaded guilty, faces possible prison time, and lives in a country that does not extradite its citizens to the United States would be detained,” the government said in its court filing.
Prosecutors stated that they had previously submitted an “exceptional recommendation” that Zhao be allowed to stay free until his sentence. They stated that Zhao poses a flight risk, but that it “could be managed by requiring him to remain in the United States and preventing him from returning to the safe haven of the United Arab Emirates.”
As part of a $4.3 billion deal with the Department of Justice, Zhao agreed to stand down as CEO of Binance. The guilty deal ends a multi-year probe into the world’s largest Bitcoin exchange.
Zhao and others were charged with violating the Bank Secrecy Act by failing to implement an effective anti-money laundering program, as well as willfully violating U.S. economic sanctions “in a deliberate and calculated effort to profit from the U.S. market without implementing controls required by U.S. law,” according to the Justice Department.
Conclusion
Binance will continue to function, albeit under new terms. To guarantee compliance with US anti-money laundering laws, the corporation will be expected to maintain and improve its compliance program. Binance is also required to employ an independent compliance monitor.
(Source: CNBC)
#Cryptocurrency #Binance #Blockchain
