Former Binance CEO Changpeng Zhao, known as CZ, was ordered by a U.S. District Court to remain in the United States for the time being before a decision on this issue is made. This comes amid ongoing legal proceedings regarding CZ’s involvement in money laundering activities.
A legal battle intensifies
Previously, CZ’s lawyers had requested permission to return to the United Arab Emirates (UAE) before his sentencing.
However, this motion was opposed by the Department of Justice (DOJ), leading to the most recent decision.
The executive’s legal team argued he was not a flight risk, citing his voluntary appearance in court and his established family life in the United Arab Emirates.
Nonetheless, the DOJ remains concerned about the possibility that Zhao may not return to the United States for his sentencing, particularly given the uncertainty of the UAE’s extradition policies.
Does CZ face prison time?
As U.Today reports, Zhao, who recently resigned from his position at Binance following a $4.3 billion settlement with the DOJ, faces a prison sentence of up to 10 years.
However, various clues suggest a lighter outcome. Zhao’s lack of criminal record and the Justice Department’s apparent willingness to reach a settlement, as seen in previous similar cases, point to a possible arrangement. Such an arrangement could involve probation or house arrest rather than a significant prison sentence.