A new development drew attention among the Binance events. The latest statement from US officials indicates that prosecutors are unhappy with the deal the US Department of Justice (DOJ) reached with Changpeng Zhao (CZ), the founder and former CEO of Binance. Because US government prosecutors pointed out the potential escape risk of Binance’s former CEO Changpeng Zhao. Due to growing concerns about this, it is intensifying efforts to prevent him from leaving the country. Here are the details…
Claim that Changpeng Zhao “may escape”
Prosecutors filed the lawsuit in a federal court in Seattle on Nov. 22. He requested that the judge’s decision, which would allow Zhao to return to his home in the United Arab Emirates (UAE) on a $175 million bail, be reviewed and, if possible, overturned the decision. This decision was made on the condition that CZ return to the United States two weeks before his scheduled sentencing in February 2024. The document also includes a proposed order in which US prosecutors argued that Binance founder Zhao “poses an unacceptable risk of flight and failure to appear” if he is allowed to leave the US before serving his sentence.
What are the chances of Binance founder staying in UAE?
Expressing doubts about the government’s ability to secure Zhao’s extradition if he decides not to return, prosecutors highlighted Zhao’s strong ties and preferred status in the UAE, as well as the absence of an extradition treaty between the two countries. The government’s concerns also extend to Zhao’s private life. Because it points out that CZ has three young children and a partner in the UAE. Prosecutors suggest that Zhao, who faces the prospect of returning to the US for a possible 18-month prison sentence upon arrival in the UAE, may choose to remain in the UAE with his family. This argument is also linked to where Binance founder Zhao keeps his wealth. It is particularly emphasized by the fact that a significant portion of it is held overseas, beyond US jurisdiction.
The market has regained its strength
Meanwhile, the legal battle comes on the heels of Zhao’s recent admission that he failed to maintain an effective Anti-Money Laundering program at Binance. As part of the plea agreement, Zhao resigned as CEO of the exchange. Then, as we reported as Kriptokoin.com, he paid a significant fine of $50 million. Despite the legal challenges surrounding Zhao and Binance, industry experts and observers remain hopeful. Because many see CZ’s agreement with the Ministry of Justice as a positive development for the crypto industry.
Moreover, the markets have already started to rise. In fact, the total market value returned to pre-Binance news levels. It reached $1.48 trillion during the Thursday morning trading session. The lawsuit against CZ is one of the most significant legal actions ever brought against a crypto executive. It is also shaping the narrative around regulatory compliance and accountability in the crypto industry.
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