US Prosecutors Urge Court to Keep Binance’s Ex-CEO within the Country Amid Flight Risk Concerns

In the wake of the settlement between the U.S. Department of Justice and Binance, the world’s largest crypto alternate, federal authorities are insisting that the alternate’s former CEO, Changpeng Zhao (CZ), stay stateside till his sentencing in February 2024.

Justice Department Seeks to Restrict Ex-Binance CEO’s Travel Before Sentencing

A latest court docket submitting reveals that U.S. prosecutors have petitioned Magistrate Judge Brian Tsuchida to make sure Changpeng Zhao’s (CZ) continued presence within the U.S. This request, lodged on Wednesday, goals to reassess the bond situations set on November 21, 2023. The U.S. authorities articulates considerations about CZ being a “substantial risk of flight.”

The filed doc explicitly states:

[The Government] requests that the court docket order that Zhao shouldn’t be permitted to return to the UAE earlier than sentencing.

Currently residing in Dubai, United Arab Emirates (UAE), CZ lives together with his three kids and companion. The prosecutors argue that the prospect of an 18-month jail time period would possibly tempt CZ to stay within the UAE together with his household. The lack of an extradition treaty between the UAE and the U.S. complicates issues, making it difficult to safe his return in case of non-compliance with court docket directives.

Despite an preliminary settlement on a $175 million bail bond, prosecutors at the moment are questioning its sufficiency. Under the proposed association, “three responsible persons” had been to safe $15 million in money for the bail. While CZ faces potential imprisonment, there stays a risk of avoiding it, akin to Bitmex’s former CEO Arthur Hayes.

Hayes, who breached the Bank Secrecy Act (BSA) by neglecting to ascertain an anti-money laundering (AML) protocol at Bitmex, confronted a possible five-year jail time period. However, as a first-time offender, he was granted two years of probation as a substitute of jail time. Hayes concluded his authorized troubles by paying a $10 million superb for his offenses.

What do you consider the prosecutor’s considerations about CZ posing a flight threat? Share your ideas and opinions about this topic within the feedback part under.