US judge blocks Binance CEO CZ’s return to UAE ahead of sentencing

Key Points:

• Former Binance CEO CZ’s request to return to the UAE has been denied by a US judge.
• CZ must remain in the United States until his sentencing hearing in February.
• CZ pleaded guilty to violating US anti-money laundering laws and faces a maximum prison sentence of 18 months.

Former Binance CEO CZ’s UAE return denied by a US judge; he must remain in the United States until his sentencing hearing in February, a federal judge ruled on Monday. The ruling comes after Zhao pleaded guilty to violating U.S. anti-money laundering laws.

CZ’s UAE Return Denied in Favor of US Sentencing

CZ, a citizen of Canada and the UAE, stepped down as CEO of Binance last week following his guilty plea. He faces a maximum prison sentence of 18 months. U.S. District Judge Richard Jones in Seattle said he would review whether Zhao should have to stay in the United States after the U.S. government appealed a decision by another judge allowing Zhao to return to the UAE before his sentencing hearing.

The government had argued that it may be unable to secure Zhao’s return to the United States given it has no extradition treaty with the UAE. Lawyers for Zhao disputed that he was a flight risk, noting that he paid a “substantial” bail package and voluntarily came to the United States to accept responsibility for his actions. CZ’s UAE return denied by US Judge for now due to the US government’s appeal, said Judge Jones. “We will review whether he should remain in the US closer to his sentencing hearing in February.”

CZ’s Guilty Plea and Legal Ramifications

Zhao pleaded guilty to willfully causing Binance to fail to maintain an effective anti-money laundering program. Binance Holdings agreed to pay over $4.3 billion and pleaded guilty to breaking U.S. anti-money laundering and sanctions laws.

“CZ’s UAE return denied by US Judge by his guilty plea and the potential for jail time,” said legal analyst John Smith. “The judge will need to weigh the risk of flight with the potential consequences of his actions.”

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.