According to a recent Reuters report, Changpeng Zhao, commonly known as CZ, the former CEO of Binance, the world’s largest cryptocurrency exchange, has been ordered by a federal judge to remain in the United States for the time being. This decision comes after Zhao pleaded guilty to violating US anti-money laundering laws, causing significant consequences and uncertainty for both him and Binance.

The judge’s ruling mandates that Zhao must stay in the US until the court in Seattle determines whether he will be allowed to return to the United Arab Emirates (UAE), where he holds citizenship, or if he should remain in the country until his sentencing hearing, scheduled for February. This development follows CZ’s resignation as CEO of Binance last week, after admitting to deliberately failing to uphold an effective anti-money laundering program within the exchange. As part of his bail agreement, Zhao has agreed to a substantial $175 million bond.

US District Judge Richard Jones in Seattle has expressed his intent to review this decision, particularly considering the US government’s appeal of a prior ruling that allowed Zhao to return to the UAE before his sentencing hearing. The outcome of this review could significantly impact CZ’s future whereabouts and any potential legal ramifications.

Alongside Zhao’s guilty plea, Binance, the cryptocurrency exchange he founded, has agreed to pay over $4.3 billion in fines and pleaded guilty to violating US anti-money laundering and sanctions laws. These financial penalties and legal consequences highlight the magnitude of the case and its potential implications for the cryptocurrency industry.

According to federal guidelines, Changpeng Zhao could potentially face a maximum prison sentence of 18 months, a fate he has agreed not to contest if the sentence falls within that range. The exact length of the jail term will be determined by prosecutors closer to his sentencing. The absence of an extradition treaty between the US and the UAE complicates matters further, as it raises questions about the feasibility of securing Zhao’s return to the United States if necessary.

Despite concerns over his potential flight risk, CZ’s legal team has argued against such notions, citing the significant bail package he has paid and his voluntary appearance in the US to take responsibility for his actions.

As the trial and conviction of Changpeng Zhao progress, additional restrictions or penalties could come to light, which may impact both his personal life and the operations of Binance. The outcome of these judicial proceedings will determine whether the former CEO will face imprisonment, along with the subsequent implications and potential sanctions imposed by US regulators on Binance.

Meanwhile, the trading price of Binance Coin (BNB) currently stands at $224, with a moderate decrease of 3% observed over the past 24 hours. However, the coin has experienced a more substantial correction of 12% over the past seven days.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.