Changpeng Zhao was released on $175 million bail, and U.S. prosecutors urged judges to barred him from leaving the U.S. while on bail
Former Binance CEO Changpeng Zhao was released on $175 million bail after pleading guilty and was allowed to return to the UAE during the bail period, and the U.S. prosecutor asked the judge to reverse the decision to allow Changpeng Zhao to return to the UAE.
Changpeng Zhao, Financial Tiger Network Diagram
On November 22, local time, U.S. prosecutors pressured a federal judge to change the judge's decision that Changpeng Zhao, founder and former CEO of Binance Holdings Limited (Binance), should not be allowed to return to the UAE while on bail.
Binance Holdings Limited operates the Binance.com of the world's largest cryptocurrency exchanges. In the U.S. charge of his felony money laundering, Changpeng Zhao pleaded guilty and agreed to pay bail of up to $175 million, $15 million in cash held in trust and three individuals secured by property or cash.
On Tuesday local time, a US magistrate judge approved Changpeng Zhao's request to return to his residence in the United Arab Emirates before the sentencing trial in February next year, despite government objections.
U.S. prosecutors strongly disagreed with the decision, arguing that Changpeng Zhao would most likely not return to the U.S. once he leaves the U.S., and said that he has huge assets and strong ties to the UAE, and that the U.S. government will not be able to extradite him in the future because there is no extradition treaty between the UAE and the United States.
"If Changpeng Zhao chooses not to face the full consequences of his actions, he (and his guarantor) will likely lose more than $20 million, but he can comfortably spend the rest of his life in the UAE," the prosecutor said. ”
Prosecutors believe that Changpeng Zhao should be barred from returning to the UAE and remaining in the United States until the sentencing hearing on February 23, 2024. Changpeng Zhao could face up to 10 years in prison, but his final sentence is not expected to exceed 18 months under a plea agreement.
Previously, Binance and Changpeng Zhao reached an agreement with the U.S. Department of Justice on November 21 local time, which will allow Binance to continue operations. Among them, Binance pleaded guilty to charges of alleged money laundering, unlicensed money transfers, sanctions violations, etc., will pay a $4.3 billion fine, and agreed to retain an independent compliance monitor for three years to correct and strengthen its anti-money laundering and sanctions compliance program. Changpeng Zhao admitted to violating U.S. anti-money laundering laws and agreed to pay a $50 million fine. In the afternoon of the same day, Changpeng Zhao tweeted his resignation as CEO of Binance, saying that he had made a mistake and must be held responsible.
Image from Changpeng Zhao's tweet
The agreement quickly sparked questions about Binance. As of the evening of November 22, Eastern time, relevant data showed that investors had withdrawn about $956 million from Binance in the past 24 hours.
On the day of Binance and Changpeng Zhao's plea, U.S. Treasury Secretary Janet Yellen said that Binance had turned a blind eye to its legal obligations in its pursuit of profits, allowing funds to flow through Binance's platform to terrorists, cybercriminals and child abusers. "To ensure compliance with U.S. laws and regulations, today's historic penalties and oversight mark a milestone for the virtual currency industry. ”