US government prosecutors are urging the court to prevent former Binance CEO Changpeng “CZ” Zhao from leaving the country, citing an “unacceptable risk of flight.”
In a filing to a Seattle federal court on November 22, prosecutors requested a review and overturn of a judge’s decision. The decision allows Zhao to return to his home in the United Arab Emirates (UAE) on a $175-million bond. The court granted Zhao’s request to visit Dubai under the condition of his return two weeks before his sentencing on 23 February 2024.
U.S. prosecutors, in a proposed order, emphasized Zhao’s connections and favored status in the UAE. The prosecutor cited Zhao’s “significant assets, his strong ties to the UAE, and the government’s inability to extradite him.” As there is no extradition treaty between the UAE and the U.S., the US government “would not be able to secure his return.”
Zhao’s Wealth and Family Ties in the UAE
The prosecutors argued further and said:
“Should Zhao choose not to face the full consequences of his conduct, he could easily stand to lose (including by compensating his guarantors) more than $20 million and live comfortably for the rest of his life in the UAE.”
“He has three young children and a partner in the UAE; once in the UAE and faced with the prospect of traveling back to the United States to face up to 18 months in prison, he may elect to instead simply stay in the UAE with his family,” the prosecutors added further.
The prosecutors also noted that Zhao could comfortably reside in the UAE with his wealth. The majority of his assets are beyond the reach of the U.S. government, so the government can not freeze them.
The government further questioned the adequacy of Zhao’s $175 million bond, asserting that a significant portion of the funds securing his release lies beyond the jurisdiction of the United States.
Source: PACER
The “substantial” flight risk comes following Zhao’s recent admission to the failure of maintaining an effective Anti-Money Laundering program at Binance. With a plea agreement, he had to resign from the position of CEO and was imposed a $50-million fine.
Industry experts and observers view Binance’s settlement with the Justice Department as a positive outcome for the cryptocurrency industry, perceiving it as a step towards further legitimization in the United States. Despite the legal turmoil, crypto markets have demonstrated resilience, rebounding to a total market capitalization of $1.48 trillion during Thursday morning’s Asian trading session, returning to pre-Binance news levels.
With a -0.43% decline from a day ago, BNB is currently trading at $235.08.
Source: CoinMarketCap
