The former CEO of Binance, Changpeng “CZ” Zhao, and his lawyers continue to face a lot of pushback from the US government regarding his bail conditions. Recent developments also suggest that the worst may not be over for the former executive despite his plea deal with the prosecutors.
US Prosecutors Insist On Former Binance CEO Staying In The US
In a recent court filing, the Department of Justice (DOJ) made its reservations known about CZ’s bail conditions, which allows him to return to the UAE. They believe that he may never answer for his crime if he fails to appear. As such, they are requesting that the court order that he stay in the United States until his sentencing in order to manage the flight risk CZ poses.
The prosecutors noted that they only initially agreed to the former Binance CEO being granted bail because it was an “unusual case.” They were referring to the fact that CZ had pleaded guilty and agreed to cooperate with the government. The former Binance CEO, alongside the crypto exchange Binance, agreed to pay over $4 billion in fines as part of the agreement.
The DOJ’s fear isn’t unfounded, as there is no extradition treaty between the UAE and the US. As such, it may be hard to repatriate CZ if he fails to show up for his sentencing. However, the former Binance CEO’s lawyers argue that their client doesn’t pose any flight risk. They also argue that CZ has no motivation to escape, considering how light his proposed sentence is.
Changpeng Zhao Could Face A Heavier Sentence
Until now, many have speculated that CZ would likely get a sentence of up to 18 months in prison per the US Sentencing Guidelines. His lawyers also seemed confident about getting a lighter sentence, which might not even include imprisonment. However, that might not be the case as the former Binance CEO could face a long term in prison.
In the court filing, the prosecutors made it clear that they could argue for a longer sentence of up to the statutory maximum of 10 years. This statement was in reference to CZ’s lawyers’ claims that their client faces a “brief” sentence and has no intention to flee. The prosecutors argued that such a penalty could weigh on CZ’s mind, and that is why the restriction is necessary.
Former SEC Attorney John Reed Stark agrees with the DOJ and believes that Judge Richard Jones should prohibit CZ from traveling to the UAE. Interestingly, he likened CZ’s crimes to “mass murder and mayhem.” In line with this, he seemed to be in support of any additional sentence the prosecutors might argue for. CZ’s sentencing is slated for February 23, 2024.
