US Prosecutors Urge Court to Keep Binance’s Ex-CEO in the Country Amid Flight Risk Concerns

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In the wake of the settlement between the U.S. Department of Justice and Binance, the world’s largest crypto exchange, federal authorities are insisting that the exchange’s former CEO, Changpeng Zhao (CZ), remain stateside until his sentencing in February 2024.

Justice Department Seeks to Restrict Ex-Binance CEO’s Travel Before Sentencing

A recent court filing reveals that U.S. prosecutors have petitioned Magistrate Judge Brian Tsuchida to ensure Changpeng Zhao’s (CZ) continued presence in the U.S. This request, lodged on Wednesday, aims to reassess the bond conditions set on November 21, 2023. The U.S. government articulates concerns about CZ being a “substantial risk of flight.”

The filed document explicitly states:

[The Government] requests that the court order that Zhao should not be permitted to return to the UAE before sentencing.

Currently residing in Dubai, United Arab Emirates (UAE), CZ lives with his three children and partner. The prosecutors argue that the prospect of an 18-month jail term might tempt CZ to remain in the UAE with his family. The lack of an extradition treaty between the UAE and the U.S. complicates matters, making it challenging to secure his return in case of non-compliance with court directives.

Despite an initial agreement on a $175 million bail bond, prosecutors are now questioning its sufficiency. Under the proposed arrangement, “three responsible persons” were to secure $15 million in cash for the bail. While CZ faces potential imprisonment, there remains a possibility of avoiding it, akin to Bitmex’s former CEO Arthur Hayes.

Hayes, who breached the Bank Secrecy Act (BSA) by neglecting to establish an anti-money laundering (AML) protocol at Bitmex, faced a potential five-year prison term. However, as a first-time offender, he was granted two years of probation instead of prison time. Hayes concluded his legal troubles by paying a $10 million fine for his offenses.

What do you think about the prosecutor’s concerns about CZ posing a flight risk? Share your thoughts and opinions about this subject in the comments section below.