Changpeng ‘CZ’ Zhao, the Binance founder who recently resigned from his position as CEO, has been barred from leaving the United States pending his trial. This comes after CZ’s legal team approached the U.S. District Court requesting that the former Binance executive be allowed to return to the United Arab Emirates before his trial.
CZ’s Lawyers Attempts to Convince Court
Zhao’s lawyers explained that the crypto entrepreneur does not pose a flight risk as he could appear in court whenever his attention is needed. Also, they cited CZ’s strong family ties in the UAE as a factor to consider in granting the motion.
The request was however contested by the Department of Justice (DOJ) who perceives a possibility that Zhao will not return to the United States when it’s time for his sentencing. Markedly, the DOJ’s argument is based on the existence of an uncertain extradition policy in the UAE.
DOJ Requests $4B Settlement From Binance
A few days ago, the DOJ demanded that Binance pay a substantial settlement amount of over $4 billion to resolve its ongoing case. The case has been ongoing for up to three years and it involves charges of money laundering, bank fraud, and sanctions violations by Binance. During the settlement, some criminal charges were levied on Zhao, especially money laundering.
He pleaded guilty to the violation of U.S. money laundering regulations and stepped down as Binance CEO. Immediately, he appointed Binance’s Global Head for Regional Markets, Richard Teng as Binance’s new CEO. Many Binance community members are waiting to see the changes that Teng will effect as the new leader.
Binance Founder and Potential Jail Term
Considering the gravity of his offense, the Binance Founder is likely to receive a sentence of up to 10 years in jail. Although some factors suggest that he will receive a lighter sentence. Up until the present charges from the DOJ, the ex-Binance CEO had no criminal record. The DOJ’s willingness to reach a settlement is also an advantage to CZ as it suggests a potential arrangement.
The agency may decide to throw in probation for him or put him on house arrest. Noteworthy, the sentencing hearing is scheduled to happen in January 2024. Until that time, CZ is left with no other choice than to remain in the U.S.