New Court Filing Seeks to Ban Former Binance CEO from Leaving the US
Newly released documents reveal that prosecutors are seeking to prevent former Binance CEO Changpeng Zhao, also known as CZ, from leaving the United States. The government argues that Zhao, who is a citizen of two other countries, poses a significant flight risk after pleading guilty to failing to maintain adequate anti-money laundering protocols for Binance, the world’s largest cryptocurrency exchange.
The government states that due to Zhao’s non-U.S. citizenship and substantial wealth outside of the United States, along with minimal ties to the country and a residence in a nation without an extradition treaty, there is a serious risk of flight. They request that he be required to remain in the U.S. until his sentencing.
Judge Allows Zhao to Return Home Pending Sentencing
However, Zhao managed to convince Judge Brian Tsuchida to allow him to return home to the United Arab Emirates (UAE) by arguing that he had already posted bail. He provided an appearance bond of $175 million, secured by $15 million in cash held in trust and three responsible individuals who pledged property or cash.
After considering these arguments, Magistrate Judge Tsuchida ruled in favor of Zhao, allowing him to return to the UAE until his sentencing under the conditions of the appearance bond.
Zhao Pleads Guilty and Resigns as Binance CEO
Earlier this week, Changpeng Zhao pleaded guilty to violating anti-money laundering laws. As part of the settlement, he stepped down from his role as chief executive of Binance. The cryptocurrency exchange also agreed to pay a hefty $4.3 billion fine to the Department of Justice.
Hot Take: Prosecutors Seek To Prevent Former Binance CEO from Leaving the US
Newly filed court documents reveal that prosecutors are pushing to ban former Binance CEO Changpeng Zhao from leaving the United States. They argue that Zhao, being a citizen of two other nations and with significant wealth outside of the US, poses a substantial flight risk after pleading guilty to failing to maintain adequate anti-money laundering protocols for Binance. However, Judge Brian Tsuchida allowed Zhao to return home to the UAE, where he currently resides, based on his bail conditions. This decision comes after Zhao’s resignation as Binance CEO and the exchange’s agreement to pay a $4.3 billion fine to the Department of Justice.
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