Using the phrase “unacceptable risk of flight,” prosecutors from the United States government are requesting that the court restrict Changpeng “CZ” Zhao, the former CEO of Binance, from leaving the country.
Zhao, the individual responsible for establishing Binance, the largest cryptocurrency exchange globally, and his lawyers submitted a formal document yesterday contesting the government’s request to prohibit his return to the United Arab Emirates (UAE) while he awaits judgment.
The proposed order put forth by US prosecutors highlights Zhao’s affiliations and privileged position inside the UAE. They presented evidence of Zhao’s substantial financial holdings, his close connections to the United Arab Emirates, and the government’s lack of capacity to facilitate his extradition.
US Prosecutors Say No To Former Binance CEO’s Travel Request
Source: PACER
Due to the absence of an extradition treaty between the UAE and the US, the latter would encounter difficulties in ensuring the repatriation of the individual in question, prosecutors said.
Zhao entered a guilty plea to one count of failing to keep up a successful anti-money laundering program earlier this week. Zhao, Binance, and a number of US agencies consented to pay $4.3 billion in fines and penalties as part of a global agreement that included the plea.
US Government Fights To Keep Former Binance CEO Changpeng Zhao On American Soil https://t.co/xxiOU8p25O
— Benzinga (@Benzinga) November 23, 2023
The prosecutors presented additional arguments, asserting that if Zhao opts not to confront the complete repercussions of his actions, he could potentially forfeit over $20 million (including compensation to his guarantors) and lead a comfortable life in the UAE for the remainder of his days.
Binance Founder’s Lawyers Push Back
The legal team for Zhao has fiercely disagreed with the DOJ’s request and is contesting Magistrate Judge Brian A. Tsuchida’s ruling. They contend that CZ’s wealth and foreign citizenship do not increase his ability to escape.
BTCUSD trading at $37,705 on the weekly chart: TradingView.com
In addition to his voluntary appearance in court, CZ has offered a sizeable bond sum as proof of his resolve to follow the law.
Concerning the sentencing aspect, CZ’s legal team has indicated a possibility of advocating against imprisonment for their client. They propose that CZ could potentially serve half of any imprisonment term in a non-jail environment, such as home detention or community confinement.
The attorneys intend to reference precedents involving comparable offenses to bolster their case for their client’s release.
BNB sustains a slight decrease in price. Source: CoinMarketCap
Zhao might get a sentence of up to 18 months in prison and a fine of $50 million based on his plea deal. Whether he can remain in the United States until his sentencing on February 23, 2024, or return to the United Arab Emirates, is the main question in this case.
For both Zhao’s future and the cryptocurrency market as a whole, this choice will have a big impact.
Meanwhile, BNB is presently trading at $235, representing a decrease of -0.42% from the previous trading day.
Featured image from Freepik