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United States government prosecutors are trying to stop former Binance boss Changpeng “CZ” Zhao Try Fleeing from country. Showing concern of a potential flight risk.
In a filing to a federal court in Seattle on November 22, U.S. prosecutors have sought a review and reversal of a judge’s decision, which would permit Zhao to go back to his residence in the United Arab Emirates (UAE) under a $175-million bond. This is contingent on his commitment to return to the U.S. two weeks prior to his scheduled sentencing in February 2024.
In a suggested directive, U.S. prosecutors expressed the view that Zhao “poses an unacceptable risk of fleeing and failing to appear if permitted to depart the United States pending sentencing.” In a corresponding letter, prosecutors conveyed that should Zhao choose not to return to the U.S., the government “would be unable to ensure his subsequent return.”
U.S. Government Cites Zhao’s Ties and Legal Concerns in Bid to Prevent Departure
In its argument Of Zhao Try Fleeing, the government pointed to Zhao’s ties and favored status in the UAE. That along with the country’s lack of an extradition treaty with the U.S.. As reasons to block him from leaving the country.
“He is a parent to three young children and has a partner in the UAE; should he find himself in the UAE and confronted with the prospect of returning to the United States to endure up to 18 months in prison, he might opt to remain in the UAE with his family instead.”
Prosecutors asserted that Zhao possesses the financial resources to maintain an enduring lifestyle in the UAE, given that the majority of his wealth is located overseas, outside the jurisdiction of the United States.
Also Read: Binance Settlement with the U.S. Government Timeline Actions
Zhao Try Fleeing: Government Challenges Adequacy of Zhao’s Bond
The government also argued Zhao’s bond was inadequate as a majority of the $175 million used to secure his release was outside the reach of the United States.
Zhao recently admitted to a lapse in maintaining an effective Anti-Money Laundering program at Binance. As part of his plea agreement, he resigned from his position as CEO of the exchange and incurred a $50-million fine.
Experts and industry observers contend that Binance’s settlement with the Justice Department signifies a positive development for the cryptocurrency sector, contributing to its enhanced legitimacy in the United States.
Moreover, cryptocurrency markets have swiftly rebounded from the adverse news surrounding one of the industry’s most enigmatic and influential figures. The total market capitalization has already restored to pre-Binance news levels, reaching $1.48 trillion during the Thursday morning Asian trading session.
The overall market capitalization has rebounded to levels seen before the Binance news, reaching $1.48 trillion in the Thursday morning Asian trading session.
