CZ ‘unacceptable flight risk’ must remain in US: DOJ
US government prosecutors are trying to stop former Binance boss Changpeng “CZ” Zhao from leaving the country, citing concerns that he may be a flight risk.
In a Nov. 22 filing in federal court in Seattle, US prosecutors asked to review and overturn a judge's decision to allow Zhao to return to his home in the United Arab Emirates two weeks before his February 2024 sentencing on $175 million bond.
In the order filed by US prosecutors, Zhao “presents an unacceptable risk of flight and non-appearance if granted pending sentencing from the United States.”
In a related letter, prosecutors said that if Zhao decides not to return to the United States, the government “cannot guarantee his return.”
In its argument, the government cited Zao's ties to and favor in the UAE, as well as the country's lack of an extradition treaty with the United States, as reasons to prevent him from leaving the country.
“He has three young children and a partner in the UAE; once he arrives in the UAE and faces the possibility of up to 18 months in prison when he returns to the US, he simply chooses to stay with his family in the UAE.
Prosecutor Zhao said the wealth could remain in the UAE indefinitely, as most of the wealth is located far from US jurisdiction.
The government argued that Zhao's bond was insufficient because most of the $175 million used for his release came from outside the United States.
Zhao recently admitted to failing to maintain an effective anti-money laundering program at Binsi, and as part of a plea deal, he stepped down as CEO of the exchange and paid a $50 million fine.
Related: Binance's DOJ settlement offers bright future for crypto industry
Industry experts and observers say Binance's agreement with the Department of Justice is a positive result for the crypto industry, making it more legal in the United States.
Additionally, the crypto markets have already recovered from the bad news regarding one of the industry's most enigmatic and influential players.
Total market capitalization has already returned to pre-news levels, reaching $1.48 trillion in the Asian trading session on Thursday morning.
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