Prosecutors seek to keep CZ in the U.S. until February sentencing

U.S. prosecutors are asking Changpeng Zhao, Binance founder and ex-CEO, not to leave the country ahead of his sentencing hearing scheduled for February 2024.

In a filing on Wednesday, prosecutors said that Zhao, a citizen of the United Arab Emirates and Canada, should not be permitted to return to his home in the UAE before sentencing on February 23 next year given “the substantial risk of flight posed by Zhao.”

The motion from the prosecutors — for review of the presentence bond conditions imposed earlier this week — comes after Zhao pled guilty on Tuesday to one count of causing Binance to fail to maintain an effective anti-money laundering program.

The prosecutors argued that Zhao, with substantial wealth outside the U.S. and minimal ties with the country, poses a serious risk of flight.

Zhao said that he should be allowed to return to the UAE “pursuant to an appearance bond of $175 million, secured by $15 million in cash held in trust and three responsible persons who pledged property or cash.”

Magistrate Judge Brian Tsuchida previously ruled that Zhao would be allowed to return to the UAE on the appearance bond — unless the court determines it will review the decision before 5 p.m. Pacific Standard Time on November 27. The judge required Zhao to return to the U.S. by February 9, 2024.

The prosecutors, however, argued in the Wednesday filing that Zhao has not established by clear and convincing evidence that he is not likely to flee if he returns to the UAE. “Zhao’s significant assets and strong ties to the UAE, as well as the government’s inability to extradite him from the UAE, favor a ruling from this court that he be required to remain in the United States until his sentencing on February 23, 2024,” the prosecutors added.