Court Restricts CZ’s Movement
A federal judge has issued an order preventing former Binance CEO Changpeng Zhao (CZ) from leaving the U.S. until the court decides on the government’s request to keep him in the country until his sentencing. The government filed the motion to challenge a release order that allowed CZ to return to the UAE while awaiting sentencing.
The order, signed by District Judge Richard A. Jones, states that the court will review Magistrate Judge Brian A. Tsuchida’s decision to permit CZ’s return to the UAE. It temporarily stays the condition that allowed CZ to leave until the court makes a decision on the government’s motion.
CZ’s Plea and Settlement
Last week, CZ pleaded guilty to failing to maintain an effective anti-money laundering program and resigned as the CEO of Binance. The U.S. government also filed charges against Binance for violating the Bank Secrecy Act and U.S. sanctions law. As part of the settlements with various agencies, Binance and CZ will pay over $4.3 billion.
CZ’s Response to Government’s Motion
CZ’s legal team has asked the court to reject the government’s motion, arguing that Magistrate Judge Tsuchida found no flight risk in CZ. They highlight that CZ voluntarily appeared before the court, taking responsibility and pleading guilty.
Under the release order, CZ must fulfill several bail conditions, including posting a $175 million personal recognizance bond and securing three guarantors, two with cash pledges and one with real property in Los Angeles valued at over $5 million.
Hot Take: CZ’s Travels Restricted Ahead of Sentencing
The decision to restrict CZ’s movement is a significant development in the ongoing legal proceedings against the former Binance CEO. This move by the federal judge indicates concerns over CZ leaving the U.S. before his sentencing and strengthens the government’s position. With CZ’s plea and the substantial monetary settlements, the fallout from this case is likely to have far-reaching implications for both Binance and the cryptocurrency industry as a whole.
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