Benzinga - Prosecutors are fervently advocating for former Binance head Changpeng “CZ” Zhao to remain in the United States, expressing apprehensions about his possible flight risk.
What Happened: In a filing to a Seattle federal court, prosecutors requested a revision and overrule of a judge’s ruling that would permit Zhao to return to his home in the United Arab Emirates (UAE) on a $ 175 million bond. The condition was that he would return to the US two weeks before his February 2024 sentencing.
In a proposed order, the prosecutors noted that Zhao poses “an unacceptable risk of flight and nonappearance” if he is allowed to leave the US before his sentencing. They further argued that if Zhao chose not to return, the government would not be able to secure his return.
See Also: Jack Dorsey Scraps Performance Reviews, PIPs For Block Employees
The prosecutors cited Zhao’s connections and favorable status in the UAE, along with the country’s lack of an extradition treaty with the U.S., as reasons to prevent him from leaving the country. They argued that Zhao could live indefinitely on his wealth in the UAE, as the majority of it is held overseas, outside of the U.S.
Why It Matters: The case against Zhao is one of the most significant legal actions against a cryptocurrency executive to date.
Zhao on Monday admitted to failing to maintain an effective Anti-Money Laundering program at Binance and paid a $ 50 million fine as part of his plea agreement. This also led to his stepping down as CEO of the exchange.
Price Action: At the time of writing, Bitcoin (CRYPTO: BTC) was trading at $36,344.38, down 3.11% in the last 24 hours according to Benzinga Pro.
Photo: Wikimedia Commons
Read Next: ‘The Dog Is Ready To Bite’: Crypto Analyst Foresees 23,000% Rally Repeat For Dogecoin Thanks To This Tech
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.