The legal team of Binance co-founder and former CEO Changpeng “CZ” Zhao motioned to the court on Thursday to let him travel to his home in the United Arab Emirates until his sentencing is laid down for his alleged breach of anti-money laundering (AML) laws. The request came after the US Department of Justice (DOJ) asked the court to bar him from leaving the country.
The lawyers of the beleaguered personality in the cryptocurrency scene sought Seattle District Judge Richard Jones to uphold the bail conditions laid down by Magistrate Judge Brian Tsuchida on Tuesday that would allow him to fly overseas while awaiting his sentence. The temporary liberty granted by the judicial order came with a $175 million bond.
The US has No Extradition Treaty with the UAE
It should be noted that CZ is a citizen of both Canada and the United Arab Emirates. The latter, where he is set to travel, presently has no extradition treaty with the US, which was the point of contention of the DOJ. Therefore, getting the accused back for sentencing would entirely depend upon his cooperation.
The US authorities added the billionaire holds significant assets in his destination. They also claimed the freedom given to CZ before sentencing was already an “exceptional” case and was only decided upon because of his travel restrictions.
“In the vast majority of cases, a multi-billionaire defendant who has pleaded guilty, faces possible prison time, and lives in a country that does not extradite its citizens to the United States would be detained,” the DOJ explained.
CZ is Not a Flight Risk
Meanwhile, the defense lawyers assured that their client was not a flight risk. Furthermore, the ex-CEO displayed willingness to cooperate with US officials from the get-go by voluntarily appearing in the US court to plead guilty — not to mention that he even posted a “substantial” bail package.
Zhao’s lawyers said the accused just plans to go back to the UAE to attend to his partner and three children as he prepares for sentencing.
Charges Against Binance and Former CEO
Last week, US officials announced the guilty plea of Binance and Zhao for the violation of US AML law, failure to secure license for money transmittal, and not reporting suspicious transactions linked to terror cells like Hamas, ISIS, and Al Qaeda. The deal came with $4 billion in fines for Binance and $50 million for CZ. The plea bargain barred Zhao from ever holding official roles within the crypto exchange, too.
End Notes
From the looks of it, both parties of the case at are an impasse. The US DOJ certainly raised a good argument as to why Binance ex-CEO Changpeng Zhao should be prevented from going to the UAE prior to his sentencing. The lack of jurisdiction by the US to fly back fugitives from the UAE means there is no assurance that CZ will ever face the music.
On the other hand, Zhao has consistently shown his willingness to abide by court orders and federal authorities. He voluntarily attended court hearings and posted bail even though a simple flight to UAE ensured him a get-out-of-jail card.