US prosecutors have expressed concern over former Binance CEO Changpeng “CZ” Zhao’s potential flight risk.
Federal prosecutors for the US Department of Justice are trying to stop CZ from leaving the US, citing concern over his potential flight risk—Zhao is currently under a $175 million release bond, which is now under review by US prosecutors.
Concern That CZ Would Not Return from the UAE
The former Binance CEO and founder is currently on a $175 million release bond that would allow his to return to his home in the United Arad Emirates (UAE), under the condition that he return fourteen (14) days before his sentencing in February 2024. In a November 22 filing to a Seattle federal court, US prosecutors requested a review of the bond and the judge’s decision to allow CZ to return to the UAE.
An excerpt from the filing reads:
“After Magistrate Judge Tsuchida’s ruling on this issue, the government gave notice that it would seek review of that decision based on the substantial risk of flight posed by Zhao. Accordingly, the government now respectfully files this motion for review of Magistrate Judge Tsuchida’s decision by the Court and requests that the Court order that Zhao should not be permitted to return to the UAE before sentencing.”
In the filing, prosecutors further suggest that “Zhao presents an unacceptable risk of flight and nonappearance if he is allowed to leave the United States pending sentencing.” In an accompanying letter, prosecutors also said if CZ decided not to return to the US, the government “would not be able to secure his return.”
The prosecutors further argued that Zhao’s ties to the UAE and the US’s lack of an extradition treaty with the UAE is all the more reason not to allow CZ to leave the country.
The arguments suppose:
“He has three young children and a partner in the UAE; once in the UAE and faced with the prospect of traveling back to the United States to face up to 18 months in prison, he may elect to instead simply stay in the UAE with his family.”
CZ Steps Down as Binance CEO
In a shocking announcement earlier this week, Changpeng Zhao announced that he was stepping down as CEO of Binance. The move came after it was revealed that Binance is facing a $4.3 billion fine and criminal charges from the US government.
Binance now faces one of the most significant fines in industry history, which relates to allegations of Binance’s involvement in violating anti-money laundering laws and sanctions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
