NEW YORK - Binance Holdings’ former chief executive Zhao Changpeng cannot return to his home in the United Arab Emirates (UAE) for now, a federal judge in Seattle ruled.
US District Judge Richard Jones on Nov 27 put on hold a ruling granting the billionaire’s request to return to the UAE following his guilty plea last week to US criminal charges but before his Feb 23 sentencing. That order will remain in effect until the district judge issues a decision on prosecutors’ motion to keep Zhao in the United States through his sentencing.
The co-founder of the world’s largest cryptocurrency exchange pleaded guilty to failing to implement anti-money laundering policies and US sanctions violations as part of a broad agreement with the US government. He agreed to post a bond of US$175 million (S$234 million), secured by US$15 million in cash held in trust, to guarantee his appearance for sentencing.
Zhao, who stepped down as Binance’s chief executive as part of the plea deal, theoretically faces as much as 10 years in prison but is expected to get no more than 18 months. He also agreed to pay a US$50 million fine.
Binance itself also pleaded guilty and agreed to pay US$4.3 billion in penalties and forfeitures. It is also facing civil lawsuits from investors seeking to recover billions lost in the exchange’s struggles.
US prosecutors on Nov 22 asked District Judge Jones to reverse a magistrate judge’s decision to let Zhao return home on bail, saying there was a “substantial risk” that he would not return to the US because of his significant assets, ties to the UAE and the lack of an extradition agreement with the Persian Gulf state.
Zhao claims he is not a flight risk, noting that he voluntarily came to the US.
Meanwhile, Binance investors sued international football star Cristiano Ronaldo, saying his efforts as a paid promoter for the exchange helped dupe customers into buying products that amounted to unregistered securities. Other celebrity endorsers named as defendants include National Basketball Association star Jimmy Butler and YouTube influencers Graham Stephan and Ben Armstrong, who was known as BitBoy Crypto.
“Mr Ronaldo’s promotions were published on public websites, television and social media accounts accessible to plaintiffs nationwide,” according to the complaint filed on Nov 27 in federal court in Miami.
Ronaldo, a native of Portugal who plays for the Saudi Arabian club Al Nassr, could not be immediately reached for comment on the suit. BLOOMBERG
