Will Binance’s Changpeng Zhao return home before the verdict?

Former Binance CEO Changpeng Zhao is facing legal proceedings in the United States for violating anti-money laundering regulations. He pleaded with his legal team to allow him to return to his home in the United Arab Emirates before sentencing.

Zhao, who resigned as CEO after pleading guilty, faces jail time and a hefty fine.

Binance's Changpeng Zhao wants to go home

Changpeng Zhao's counsel asked U.S. District Judge Richard Jones to honor the bail conditions granted by U.S. Magistrate Judge Brian Shuchida. These conditions allow Zhao, a citizen of the United Arab Emirates and Canada, to leave the United States pending his sentencing on February 23, 2024.

Zhao has already posted a $175 million bail in his commitment to face the charges.

The Justice Department, however, expressed concern about Zhao's flight risk. The federal agency emphasized that there is no extradition treaty between the US and the UAE.

Indeed, prosecutors are pushing to overturn Zhao's decision to go abroad. Given his high financial standing, they argue that securing Zhao's return to justice could be a challenge.

“In most cases, a multibillionaire defendant who pleads guilty, faces prison time and lives in a country that does not extradite its citizens to the United States will be jailed,” lawyers said.

Still, Zhao's legal representatives argue that he has shown responsibility by voluntarily appearing in the US. They argued that his return to the UAE would allow his family to prepare for the next trial. Interestingly, Judge Tuchida seems to agree.

Judge Tuchida argued in a recent lawsuit that Zhao's actions “speak louder than his anxiety.” Zhao said he was under no obligation to go to the US, but his intention was to “solve this issue, not to run.”

Based on Mr. Zhao's voluntary surrender, his willingness to settle this case, and his high bail package, Judge Tuchida found that Mr. Zhao was not a flight risk. United Arab Emirates,” the filing said.

Changpeng Zhao's involvement in Binance's failure to implement an effective anti-counterfeiting program has had significant consequences. U.S. officials said the firm violated anti-money laundering and sanctions laws by failing to report more than 100,000 suspicious transactions, including ties to entities the United States has designated as terrorists.

“On that note, I am proud to say that Binance has not misused any user funds and that Binance has not engaged in any market manipulation in our decisions with US agencies. Funds are SAFU,” Zhao said.

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As part of the plea agreement, Binance is set to pay more than $4.3 billion in US commodity futures trading commissions. Zhao's request for repatriation remains controversial as he faces up to 18 months in prison.