Binance Founder Changpeng “CZ” Zhao Is Not a Flight Risk, His Lawyers Said
A filing on Thursday said Binance founder Changpeng Zhao “CZ” “does not pose a flight risk” and is therefore allowed to return to the United Arab Emirates for the time being.
The document, which was partially redacted, contradicted a submission from the US Department of Justice. Zhao had pleaded guilty to violating the Bank Secrecy Act and would not have been allowed to leave before his sentencing in February. Zhao’s lawyers argue that the fact that he entered a guilty plea in the United States proves that he is not a flight risk. The filing states that Judge Brian Tsuchida, who is overseeing Zhao’s case, has already recognized Zhao’s willingness to appear in court.
The filing states: “Based on all relevant facts, including Mr. Zhao’s voluntary surrender, his intention to resolve this matter, and the substantial bail he offered, Judge Tsuchida concluded that at “Mr “CZ” Zhao resigns as CEO and pleads guilty in Seattle
Binance and Zhao pleaded guilty to multiple charges together earlier this week. Binance agreed to pay a massive $4.3 billion in fines, appoint monitors to oversee its compliance program, review past transactions, and accept Zhao’s resignation as CEO. Richard Teng, Binance’s former regional market head, has been named CEO. Zhao was released on Tuesday on personal restitution of $175 million. His lawyers and the Justice Department are still arguing over whether Zhao can return to the United Arab Emirates, where he is a citizen and where his entire family lives, or whether he can remain in the United States. Zhao must return to the United States at least two weeks before his sentencing if he returns to the UAE.
The DOJ claimed that Zhao was able to absorb the loss of $15 million in trust funds he had set up and the $5 million his sureties had deposited. Zhao’s lawyers said this argument ignores the financial commitment Binance and Zhao have made. They said other Justice Department arguments also ignored everything Zhao had already done, including flying to the United States. The filing states that “given the weight of this information and Judge Tsuchida’s consideration, the government provides no meritorious or additional basis” for insisting that Mr. Zhao die in the months between his guilty plea and his sentencing the United States and away from his family.”
Zhao’s sentencing is scheduled for February 23, 2024. In his plea agreement, he agreed to pay a $50 million fine and a possible 18 months in prison.
