After pleading guilty to money laundering, former Binance CEO Changpeng Zhao is seeking approval from a federal judge to return to his residence in the United Arab Emirates prior to his sentencing in the United States. This request comes following his resignation from Binance as part of a $4.3 billion settlement with the Department of Justice. Despite facing a potential 10-year prison sentence, Zhao’s attorneys argue that he should be allowed to return home, emphasizing his willingness to appear in court and his non-flight risk status due to his family ties in the UAE. They also highlight the recent expansion of his family, with the birth of his third child.
The Department of Justice has yet to respond to the plea, and a ruling on Zhao’s request is expected from U.S. District Judge Richard Jones by Monday.
In light of Binance’s ongoing legal scrutiny, federal regulators and law enforcement agencies, including the Commodities Futures Trading Commission, have been investigating the world’s largest crypto exchange. A recent settlement revealed that Binance had failed to prevent money laundering on its platform and had operated unlawfully in the U.S., enabling traders from countries facing U.S. sanctions, such as Iran, to conduct business with Americans. The allegations further suggest that Binance profited from permitting “darknet” actors and ransomware hackers to operate on its platform and neglected to adequately screen for illicit activities.
Court documents filed this week indicate that Zhao knowingly bypassed certain security measures for malicious actors on the platform and failed to report suspicious activities to regulators.
