US federal judge: Zhao Changpeng cannot leave the country during trial

U.S. District Court Judge Richard Jones in Seattle ordered on Dec. 7 that Binance founder Changpeng Zhao (CZ) must remain in the United States until his sentencing date on Feb. 23, 2024, as the former exchange CEO poses too great a flight risk if he is allowed to return to the UAE.

Zhao pleaded guilty to money laundering on Nov. 21 and agreed not to appeal his potential 18-month prison sentence. Judge Jones agreed with earlier arguments by federal prosecutors, writing that “the defendant possesses substantial wealth and property abroad with no ties to the United States.” Prosecutors said they “cannot ensure that Zhao will be brought back” if he decides not to return to the U.S.

Judge Jones added: "His family lived in the UAE and he appeared to enjoy a special status in the UAE. In the circumstances, the court is of the view that the defendant has not established by clear and convincing evidence that he would be unlikely to flee if he returned to the UAE."

"For the reasons stated above, the court grants the government's motion that the defendant remain in the continental United States during the period of his guilty plea and sentencing."

On December 6, Judge Jones accepted Zhao Changpeng's guilty plea, which he submitted almost two weeks ago, but has not yet made a decision on allowing him to return to Dubai, where he lives.

Zhao Changpeng is currently out on $175 million bail, which Judge Jones said "appears to be comprised primarily of assets that are out of the government's reach."

He added that the bail conditions allow Zhao Changpeng to travel freely in the United States and allow his family to visit him , which he called a "restriction that imposes little burden on the defendant's freedom."

In November, Binance and Zhao Changpeng reached a $4.3 billion settlement with U.S. regulators, admitting to operating an unlicensed money transmitting business and violating bank secrecy laws. The settlement also prompted Zhao Changpeng to resign as CEO.