Changpeng Zhao, famously known as CZ, and the architect of cryptocurrency exchange Binance, has been restricted from traveling back to the United Arab Emirates.

Initially, the terms of Zhao’s bond permitted him to return to his residence in the UAE, where his immediate family also resides. However, prosecutors raised concerns about the possibility of flight risk due to Zhao's substantial wealth and the lack of an extradition agreement between the United States and the UAE.

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Why It Matters: Judge Jones underscored the severity of the potential penalties Zhao faces, noting, “While the defendant has indicated he will be asking for a lesser sentence, the government has indicated it may be asking for as much as 18 months of incarceration.” Such a duration doesn’t denote a negligible period, which further contributed to the verdict passed down.

After admitting to contraventions connected to anti-money laundering and money transmission regulations, Binance consented to a fine of $4.3 billion. Zhao had voluntarily resigned from his leading role at Binance in the wake of these events.

Price Action: At the time of writing, Bitcoin (CRYPTO: BTC) was trading at $43,521, down 1.02% in the last 24 hours, according to Benzinga Pro. 

Photo Courtesy: Wikimedia Commons