Former Binance CEO Changpeng Zhao, who recently pleaded guilty to money laundering, is seeking permission from a federal judge to return to his home in the United Arab Emirates (UAE) prior to his sentencing in the United States. The plea deal allowed Zhao to fly home to his family while awaiting sentencing. However, prosecutors have objected to this arrangement and are urging the judge to prevent Zhao from leaving the country. Lawyers representing Zhao, who holds dual citizenship in Canada and the UAE, filed a motion stating that he does not pose a flight risk and that preventing him from returning to his family would be punitive. They emphasized that Zhao willingly appeared in court to plead guilty and that his family has recently expanded, with the birth of their third child a few months ago. Allowing Zhao to remain in the UAE would enable him to take care of his family and prepare them for his eventual return to the US.

The Department of Justice has yet to comment on the matter, and Judge Richard Jones is expected to make a ruling on Zhao's request by Monday. Binance, the world's largest cryptocurrency exchange, has been under investigation by federal regulators and law enforcement agencies, including the Commodities Futures Trading Commission. In a settlement with the government, Binance admitted to failing to prevent money laundering on its platform and operating illegally in the US by allowing traders from sanctioned nations, such as Iran, to engage in business deals with Americans. Federal investigators alleged that Binance profited from illegal activities, such as “darknet” operations and ransomware attacks, by inadequately screening for illicit services. Zhao himself admitted to intentionally ignoring certain filtration processes for bad actors on the platform and failing to file suspicious activity reports with regulators.

In response to the Justice Department's request, Zhao's lawyers are urging Judge Jones to reject the notion of barring Zhao from returning to the UAE until his sentencing. They argue that the bail conditions that were set by a magistrate judge on Tuesday, allowing Zhao to leave the US while awaiting sentencing, should remain in place. Zhao's legal team highlighted that he is a citizen of the UAE and Canada, and emphasized that he stepped down as CEO of Binance and accepted responsibility for the company's failures. The Justice Department expressed concerns that Zhao may not return for his sentencing, as there is no extradition treaty with the UAE and Zhao possesses substantial assets as a billionaire. However, Zhao's lawyers contend that he has already demonstrated that he is not a flight risk by agreeing to a significant bail package and voluntarily coming to the US to face the charges. They argue that allowing Zhao to return to the UAE would enable him to fulfill his obligations to his partner and three children while preparing for his sentencing.