U.S. prosecutors are expressing concern that Changpeng Zhao, the ex-CEO of Binance, may abscond before his scheduled sentencing in February 2024. They point to his ties to the United Arab Emirates and the possibility of him staying there to avoid US justice, given the absence of an extradition treaty with that country.
Changpeng Zhao soon prevented from returning to his home in the United Arab Emirates?
In a motion filed on Wednesday November 22 with a court in Seattle, where Changpeng Zhao appeared a few days ago, U.S. prosecutors expressed concern about a potential flight by the former Binance CEO. They fear that CZ may abscond before his sentencing on February 23, 2024.
“Following Judge Tsuchida’s ruling on the matter, the government made it known that it would request a review of the decision due to the significant flight risk Zhao posed. “
In this document, the prosecutors explain that Changpeng Zhao has privileged ties with the United Arab Emirates, where he currently resides, and this added to the fact that this country does not have an extradition treaty with the U.S.
“He has 3 young children and a partner in the UAE; once in the UAE and faced with the prospect of returning to the US to serve a prison sentence of up to 18 months, he may choose to remain in the UAE with his family. “
In a similar vein, prosecutors wrote that the former Binance CEO’s fortune was not subject to U.S. jurisdiction, and therefore the U.S. had no leverage over him should he fail to appear for trial.
For his part, CZ had asserted that it was entirely within his rights to return to the United Arab Emirates after agreeing to a $175 million bond in exchange for his freedom, which is secured by $15 million in cash and pledged assets. An “insufficient” guarantee according to prosecutors, who claim that most of these assets are therefore held abroad and are therefore irrecoverable.
Earlier this week, Changpeng Zhao found himself forced to relinquish his position as CEO of the world’s largest cryptocurrency exchange after pleading guilty to the charges against him, including allowing Binance to operate without an adequate anti-money laundering program.
For the time being, Binance’s ex-CEO is forced to remain in the United States until at least November 27. The court is due to rule on the prosecutors’ motion before 5pm (US time) this evening, or around 10pm in France.
