Changpeng “CZ” Zhao, the former CEO of Binance, has refuted claims made by the U.S. Department of Justice that he poses a flight risk and might not return before his sentencing in the following year.
In the wake of his guilty plea, former Binance CEO Changpeng “CZ” Zhao has resisted attempts by the US government to prevent him from seeing his family in the United Arab Emirates (UAE) while he awaits sentencing.
Zhao’s attorneys asked a U.S. district judge to reject the U.S. Department of Justice’s (DOJ) proposed modification to his bail conditions in a Nov. 23 court filing.
Zhao should be allowed to leave the United States and return to the United Arab Emirates until his sentencing in February 2024, it was further emphasised.
Despite the possible 18-month prison sentence, the attorneys made it clear that he has no intention of staying in the United Arab Emirates to avoid his sentencing date.
As Judge Tsuchida found, all the facts and circumstances amply demonstrate that Mr. Zhao poses no risk of flight and should be permitted to reside at home with his family in the UAE pending sentencing. The government’s motion should be denied.”
Moreover, Zhao’s attorneys contended that by taking a plane from the United Arab Emirates to the United States, he had assumed responsibility for his actions.
“He intends to settle this matter, and it would be nonsensical to undertake all these significant actions without intending to appear for sentencing,” the document stated.U.S. prosecutors argued in a court filing on November 22 that Zhao’s perceived flight risk warranted a ban on his departure from the country. According to the DOJ, the government would face difficulties in securing Zhao’s return if he decides not to return from the United Arab Emirates for his sentencing.
But according to a bond document that was submitted to the court on November 21, Zhao pledged to return to the United States 14 days prior to his Feb. 23, 2024, sentencing date, and had a $175 million release bond.
This comes after Zhao consented to resign as Binance’s CEO and entered guilty pleas to multiple DOJ charges. He will be able to keep his majority ownership in Binance as a result of the deal, but he will not be able to hold an executive role at the cryptocurrency exchange.
The agreement will settle Binance’s disputes with the Commodities Futures Trading Commission but has no bearing on the company’s ongoing legal battle with the U.S. Securities and Exchange Commission.