The U.S. Department of Justice (DOJ) has expressed its stance on the flight risk of Changpeng ‘CZ’ Zhao, the CEO of Binance, stating that while they don’t advocate for his immediate incarceration until sentencing, they oppose his departure from the United States. The DOJ argues in a recent filing that Zhao is a “flight risk that could be managed.”
Last week, CZ’s legal representatives contended that his voluntary appearance in a U.S. court, despite being a non-U.S. citizen with passports from the UAE and Canada, should demonstrate that he is not a flight risk. The filing stated, “Based on all the relevant facts, including Mr. Zhao’s voluntary self-surrender, his intent to resolve this case, and the sizable bail package he proposed, Judge Tsuchida found that Mr. Zhao presents no risk of flight, even while residing in the UAE.”
However, U.S. Attorneys disputed this, asserting that the potential severity of the sentence might provide Zhao with an incentive to flee back to the UAE, a country with no extradition treaty with the U.S. Prosecutors argued that Zhao, being a citizen of the United Arab Emirates, has “minimal ties to the U.S.” and may not return if allowed to leave.
The filing emphasized that the proposed sentence could be significant, with a range of up to 18 months, and the U.S. is free to argue for a maximum sentence of ten years. The DOJ contends that the potential penalties Zhao faces at sentencing could influence his decision to flee, supporting the reasonable restrictions the United States suggests.
On Tuesday, Zhao pleaded guilty to violating anti-money laundering laws in the U.S. and resigned as the CEO of Binance. Simultaneously, Binance, the cryptocurrency exchange, pleaded guilty to multiple criminal and civil charges, agreeing to pay $4.3 billion in penalties, marking one of the largest corporate fines in the history of the U.S. Department of Justice.
