Binance: Why Was CZ Allowed to Stay in the UAE Despite Risk of Escape?

The trial of Changpeng Zhao (CZ) took place on November 22, 2023. Federal Judge Alison Nathan acknowledged that there was a risk of flight. However, she ultimately decided to allow Zhao to remain in the UAE based on his past actions and stated intentions to resolve the matter. Zhao, former CEO of Binance, will have to return to the United States 14 days before his sentencing.

CZ told the court that he had never been to court or a criminal, that he was scared but wanted to resolve the issue, and that he had not taken advantage of his UAE citizenship (no extradition). The judge recognized his attitude and said that he had no obligation to come to the…

— Wu Blockchain (@WuBlockchain) November 22, 2023

Zhao allowed to reside in the UAE while awaiting sentencing

The arrest of CZ took place in July 2023, at the request of the United States. He is currently facing four charges, including:

• electronic fraud,
• conspiracy to commit electronic fraud,
• violating securities law.

According to U.S. prosecutors, CZ (along with other Binance executives) set up a crypto trading platform that was non-compliant with U.S. laws.

During the hearing on November 21, Zhao stated to Judge Nathan that he wanted to “close the case”. “I’ve never been in jail before, and I am a little scared to come to the United States,” he claimed, adding that he had no intention of fleeing.

Impressed by the former Binance CEO’s attitude, Judge Nathan stated: “CZ had no obligation to come to the United States, but he did. He would be more likely to appear for his trial if he were allowed to remain in the UAE.”

Binance case and CZ trial: What impact on the crypto market?

Judge Nathan’s decision could have a potential impact on the crypto industry. It shows that the U.S. courts are willing to allow individuals accused of crypto-related crimes to stay in their home countries.

However, Zhao has not yet been found guilty of the charges against him. He nevertheless faces a potential prison sentence, which could also negatively impact the crypto market.

In any case, Judge Nathan’s decision remains an important development in the Binance case. To be continued!