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Prosecutors Urge Restriction on CZ’s U.S. Departure Before Sentencing

Image of a gavel and the U.S. flag symbolizing the ongoing legal proceedings against Binance's ex-CEO Changpeng Zhao
Changpeng Zhao’s Legal Bind in the U.S.

Changpeng Zhao, Binance’s ex-CEO, pleaded guilty to a charge of violating the Bank Secrecy Act. Following his resignation from the crypto exchange, U.S. prosecutors are urging that he be prevented from leaving the country ahead of his February 2024 sentencing. Zhao’s guilty plea is part of a larger context where Binance agreed to a substantial $4.3 billion penalty for allowing U.S. users and those from sanctioned regions to use the platform without proper regulatory compliance.

Flight Risk Concerns Raised by Prosecutors

Federal prosecutors, in a recent court filing, expressed concerns about Zhao’s potential flight risk. As a United Arab Emirates citizen with minimal U.S. ties, they fear he may not return for his sentencing. They are not seeking his imprisonment before the sentencing but want assurance of his presence in the U.S.

Conditions of Zhao’s Current Bond Agreement

Under his existing bond terms, Zhao can leave the U.S. This agreement includes a $15 million trust account, a $175 million personal recognizance bond, and additional guarantors. However, prosecutors deem these measures insufficient, citing Zhao’s substantial overseas assets and the lack of an extradition treaty between the UAE and the U.S.

Zhao’s Legal Team Argues Against Stay

Zhao’s attorneys argue that staying in the U.S. would pose hardship for him and his family, who cannot relocate to the U.S. for the months leading up to the sentencing. However, prosecutors counter that Zhao’s voluntary surrender to plead guilty does not diminish his flight risk.

Awaiting Court’s Decision on Zhao’s Travel

The review of Zhao’s presentence bond conditions is ongoing. Prosecutors emphasize his substantial assets and strong UAE ties as factors necessitating his stay in the U.S. until the February sentencing. The final court decision on this matter is pending.

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