Binance CEO Zhao Released on $175 Million Bond
22 Nov, 2023 ● Crypto people
Changpeng "CZ" Zhao, the founder of Binance, has agreed to pay a $175 million release bond and return to the United States 14 days prior to his sentencing on February 23, 2024; this could potentially allow him to return to Dubai.
Zhao consented to disclose to the court where he would reside and that a warrant could be issued for his arrest if he does not appear for his scheduled court date in a bond document filed in a federal court in Seattle on November 21.
Failure to appear in court can result in a $250,000 fine and up to 10 years in prison.
Zhao promised to forfeit the $15 million he posted in a trust account that was kept apart from his bond should he not follow the terms of the agreement.
Additionally, it lists two guarantors who will post $100,000 and $250,000, respectively.
Although The New York Times revealed on November 21 that prosecutors are considering giving Zhao a longer sentence, Zhao entered a guilty plea to a charge of violating the Bank Secrecy Act, which carries an 18-month sentence.
Zhao's bail decision is anticipated to be reviewed by the United States.
In the event that a judge declines to review the order, it will take effect at 5 p.m. Washington time on November 27.
Zhao is required to remain in the United States until a decision is made if the judge grants a review before that date.
Although the United States and the United Arab Emirates do not have an extradition agreement, Zhao has been based in Dubai for multiple years.
On February 24, the two nations signed a bilateral agreement to strengthen law enforcement cooperation.
Zhao's bond agreements come after the cryptocurrency exchange and the United States reached a $4.3 billion settlement in which Zhao gave up his position as CEO of Binance and paid a $50 million fine.