Substantial Risk of Flight’ Posed by Ex-Binance CEO, Prosecutors Say in Filing Seeking To Bar CZ From Leaving US

Substantial Risk of Flight’ Posed by Ex-Binance CEO, Prosecutors Say in Filing Seeking To Bar CZ From Leaving US

New documents reveal that the prosecutors have filed documents seeking to ban former Binance CEO Changpeng Zhao from leaving the US.

In a new court filing, the government argues that Zhao, a citizen of two other nations, poses a “substantial risk of flight” after pleading guilty to failing to keep adequate anti-money laundering protocols for Binance, the world’s largest crypto exchange platform by volume.

“As a non-U.S. but UAE (United Arab Emirates) citizen with substantial wealth outside the United States, minimal ties to the United States, and a residence in a country without an extradition treaty with the United States, Zhao poses a serious risk of flight and [it is] requested that he be required to remain in the continental United States pending sentencing.”

However, Zhao successfully swayed Judge Brian Tsuchida to his side by arguing that he should be able to go back to the UAE because he had already posted bail.

“Zhao argued that he should be allowed to return to his home in the UAE pursuant to an appearance bond of $175 million, secured by $15 million in cash held in trust and three responsible persons who pledged property or cash.

After considering these arguments, Magistrate Judge Tsuchida ruled that Zhao be allowed to return to his home in the UAE pending sentencing pursuant to an appearance bond secured with the collateral described above.”

Zhao pleaded guilty to violating anti-money laundering laws earlier this week and stepped down from his role as chief executive of Binance as the crypto exchange agreed to pay a massive $4.3 billion fine to the Department of Justice (DOJ).

Featured Image: Shutterstock/Pavel Chagochkin

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