US prosecutors asked a court to reverse its decision allowing Binance Holdings Ltd.’s Changpeng Zhao to travel to his home in the United Arab Emirates after pleading guilty this week in a felony criminal case.
Over the government’s objection, a US magistrate judge on Tuesday granted the multi-billionaire’s request to return to the UAE before his February sentencing. The founder of the world’s largest crypto exchange agreed to post a bond of $175 million, secured by $15 million in cash held in trust and three responsible persons who pledged property or cash.
Changpeng Zhao, chief executive officer of Binance Holdings Ltd., center, exits federal court in Seattle, Washington, US, on Tuesday, Nov. 21, 2023. Zhao pleaded guilty to anti-money laundering violations and agreed to pay a $50 million fine Tuesday under a sweeping deal worked out with the Justice Department designed to keep the company operating.
In a court filing Wednesday, Justice Department prosecutors urged the court to reconsider, saying there’s a “substantial risk” that Zhao would not come back to the US. They cited Zhao’s “significant assets, his strong ties to the UAE, and the government’s inability to extradite him.” The UAE doesn’t have an extradition treaty with the US. “Should Zhao choose not to face the full consequences of his conduct, he could easily stand to lose (including by compensating his guarantors) more than $20 million and live comfortably for the rest of his life in the UAE,” prosecutors argued.
Zhao and Binance pleaded guilty Tuesday to anti-money laundering and US sanctions violations under a sweeping settlement with the government that allows the cryptocurrency exchange to continue operating. The former CEO faces as many as 10 years in prison but is expected to get no more than 18 months under a plea deal that appears to have saved him from the harsh penalties that other prominent crypto criminals have faced. Zhao agreed to pay a $50 million fine and step down as CEO.
The case is US v. Zhao, 23-cr-00179, US District Court, Western District of Washington (Seattle).
