Changpeng “CZ” Zhao, the former CEO of the cryptocurrency exchange Binance, is now required to stay in the United States, a federal judge ruled on Monday. This decision comes after Zhao pleaded guilty last week to violating the Bank Secrecy Act.
The ruling has suspended a previous arrangement that allowed Zhao to return to his family in the United Arab Emirates while awaiting sentencing in February 2024. Prosecutors argued that Zhao was a flight risk and lacked an extradition treaty with the UAE.
Last week, a DOJ spokesperson had previously told Reuters that Zhao would stay in the Seattle area until Monday but would be allowed to return to the UAE.
On November 21st, Zhao pleaded guilty to failing to maintain an effective Anti-Money Laundering program during his tenure as CEO of Binance, violating the Bank Secrecy Act. After posting a $175 million bond, CZ essentially remains free to travel within the United States until his sentencing, scheduled for February 2024.
CZ resigned as CEO of Binance on November 21st as part of an agreement with the US Department of Justice. The agreement allowed the cryptocurrency exchange to pay $4.3 billion to avoid further legal actions.