Former Binance CEO Lawyers Urge U.S. Judge to Reject Request to Bar UAE Return
Lawyers for former Binance CEO, Changpeng Zhao, are taking a stand against the U.S. Justice Department’s request to prevent him from returning to his home in the United Arab Emirates until he is sentenced for violating anti-money laundering requirements.
In their filing on Thursday, Zhao’s lawyers urged U.S. District Judge Richard Jones in Seattle to maintain the bail conditions set by a magistrate judge that would allow him to leave the U.S. while awaiting sentencing.
Zhao, who is a citizen of the UAE and Canada, resigned as CEO of Binance after pleading guilty to willfully causing the global cryptocurrency exchange to fail to maintain an effective anti-money laundering program. The U.S. authorities accused Binance of breaking anti-money laundering and sanctions laws, as well as failing to report over 100,000 suspicious transactions with organizations that the U.S. described as terrorist groups.
As part of a plea deal, Binance agreed to pay over $4.3 billion. Zhao also agreed to pay a $150 million penalty to the U.S. Commodity Futures Trading Commission. Prosecutors have stated that he faces up to 18 months in prison.
The Justice Department is seeking to reverse the decision to allow Zhao to return home to the UAE ahead of his Feb. 23 sentencing, after agreeing to release him on a $175 million bail bond. They emphasized that there is no extradition treaty with the UAE, and Zhao is a multi-billionaire with significant assets, making it difficult to secure his return if he chooses not to come back to the U.S.
Zhao’s lawyers argued that he is not a flight risk, as evidenced by his willingness to accept responsibility and agree to a substantial bail package. They also pointed out that allowing Zhao to return to the UAE would allow him to take care of his partner and three children.
The Justice Department disputed this, stating that Zhao’s release before sentencing was an exceptional decision and that in most cases, a multi-billionaire defendant who has pleaded guilty and faces possible prison time would be detained, especially if they live in a country that does not extradite its citizens to the United States.
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