- CZ’s attorneys asked the U.S. District court Richard Jones to uphold the bail terms.
- Zhao, who has dual citizenship in the UAE and Canada, quit as CEO of Binance earlier.
Former Binance CEO Changpeng Zhao (CZ) is at the center of a courtroom confrontation in the legal controversy. The attorneys for CZ are vigorously opposing U.S. Justice Department (DOJ) attempts to block his return to the UAE until his sentence for anti-money-laundering (AML) violations.
CZ’s recent guilty plea involved Binance in serious violations, leading to one of the largest business settlements in United States history, and this ongoing legal turmoil comes on the heels of that development.
Voluntary Self Surrender
Zhao, who has dual citizenship in the UAE and Canada, quit as CEO of Binance after confessing to intentionally weakening the exchange’s anti-money laundering procedures.
Binance, according to the U.S. DOJ, broke the law by not reporting suspicious trades involving companies associated with terrorist groups, which constitutes a violation of the laws against money laundering and sanctions.
The filing mentioned:
“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.”
The enormous sum of $4.3 billion paid by Binance as part of the plea agreement comes at a time when CZ might be fined $150 million by the U.S. CFTC and sentenced to 18 months in jail.
CZ’s attorneys asked the U.S. District court Richard Jones to uphold the bail terms imposed by a magistrate court. These terms would make it possible for CZ to return to the UAE pending punishment.
However, the DOJ is lobbying for CZ’s ongoing presence in the U.S., citing flight concerns. The authorities have raised fears that, given his financial position and the absence of an extradition pact with the UAE, he would opt not to return.
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