U.S. Prosecutors Seek to Keep Binance Founder in the U.S. Before Sentencing
The Department of Justice (DOJ) is urging a Seattle federal judge to prevent Binance founder Changpeng Zhao from leaving the United States before his sentencing, citing concerns that he may flee. Prosecutors argue that Zhao has limited ties to the U.S. and therefore poses a flight risk. His sentencing hearing is scheduled for February 23, 2024. While Zhao can currently leave the country after posting a $175 million personal recognizance bond and locking $15 million in a trust account, prosecutors claim that the bond falls outside of U.S. jurisdiction, making it difficult for them to access the funds if Zhao decides not to return.
Background on the Case
As part of a settlement agreement, Zhao has agreed to step down as CEO of Binance and pay a $4.3 billion fine. Additionally, he could face up to 18 months in prison under federal sentencing guidelines, although the DOJ has reserved the right to seek a sentence beyond these guidelines.
Hot Take: Zhao’s Potential Flight Risk
The DOJ’s efforts to prevent Changpeng Zhao from leaving the U.S. before his sentencing highlight concerns about his potential flight risk. With minimal ties to the country, there are fears that he may not return if allowed to travel abroad. The prosecution emphasizes that while Zhao has posted a substantial bond, accessing those funds would be challenging due to their location outside of U.S. jurisdiction. As this legal battle unfolds, it remains uncertain whether Zhao will ultimately be sentenced within federal guidelines or if the DOJ will push for a harsher penalty. The outcome of this case will have significant implications for both Binance and the broader cryptocurrency industry.
By
By
By
By
By