In a recent twist of events in the Binance lawsuit and Changpeng Zhao’s guilty plea, Federal prosecutors claimed that Zhao, Binance’s former CEO, cannot leave the U.S. before his sentencing in February concerning “the substantial risk of flight posed by Zhao.” Zhao is a UAE citizen with few ties in the U.S., and if he decides to stay in the UAE for fear of sentencing, it would be hard to prosecute him since there is no extradition treaty between the UAE and the U.S. 

Zhao, alongside Binance, pleaded guilty to money laundering and other criminal and civil charges. Binance agreed to a settlement agreement of $4.3 billion, which is considered to be among the largest corporate fines in the history of the U.S. Department of Justice (DOJ).  

In recent filings, prosecutors claimed that Zhao, a citizen of the UAE, has minimal ties to the U.S. For fear of a jail sentence, if he stays in the UAE, there is no assurance of his return. Since most of Zhao’s wealth is overseas, the DOJ won’t be able to get a bond of $175 million. The only thing the DOJ can get is the $15 million he put in a trust account and the $5 million each of the three guarantors promised. 

Given Zhao’s strong connections with the UAE’s government, which was proved through the extraordinary circumstances in which he got his citizenship, it would not be possible for the U.S. to ask the UAE government to expel Zhao if he decides not to return. 

Magistrate Judge Brian Tsuchida said to the prosecutors that Zhao was not a flight risk, as seen by his willingness to come forward and plead guilty. In response to this, the prosecutor said, “There’s a difference between voluntarily coming to the U.S. to plead guilty and doing so to face potential prison time.”

Zhao will be in the U.S. until November 27, and if the judge chooses not to proceed with the DOJ filing by 5.00 p.m.(PT) on that day, he will be free to travel back to UAE. The judge requires him to come back to the U.S. by February 9, 2024, which is 14 days before the trial.