A federal judge in Seattle ruled on Monday that Binance co-founder Changpeng Zhao cannot return to his home in the United Arab Emirates while on bail. Seattle District Court Judge Richard Jones on Monday suspended a ruling that allowed Zhao Changpeng to leave the United States while on bail but must return 14 days before the sentencing of his case on February 23 next year.
The suspension order will remain in effect until a judge makes a formal decision on a motion filed by U.S. prosecutors to ban Zhao Changpeng from leaving the United States.
Changpeng Zhao previously admitted failing to implement anti-money laundering policies and violating U.S. sanctions as part of a broad agreement with the U.S. government. He agreed to post bail of $175 million, with $15 million in cash secured by a trust to guarantee his appearance at trial.
The U.S. Department of Justice asked the court on Wednesday to reverse a decision allowing Zhao Changpeng to travel to his home in the United Arab Emirates while on bail. The U.S. Department of Justice urged the court to reconsider the decision because there was a "significant risk" that Changpeng Zhao would not return to the United States. They cited Zhao's "significant assets, his strong ties to the UAE, and the government's inability to extradite him" as reasons. The UAE does not have an extradition treaty with the United States.
"Had Zhao chosen not to face the full consequences of his actions, he could have easily suffered losses in excess of $20 million (including compensation to his sponsors) and lived out the rest of his life comfortably in the UAE," prosecutors from the U.S. Department of Justice argued.