CZ Zhao: No Flight Risk, Asserts Binance Founder's Legal Team

• Binance Founder CZ Zhao Poses No Flight Risk, Claims Legal Filing
• Basis of the Argument
• Binance's Massive Fine Settlement and CEO Resignation
• Conditions for Return to UAE
• Scheduled Sentencing Date

Binance Founder CZ Zhao Poses No Flight Risk, Claims Legal Filing

A legal document submitted on Thursday argues that Changpeng CZ Zhao, founder of Binance, does not pose a risk of flight and should be permitted to return to the United Arab Emirates. This comes in response to a previous U.S. Department of Justice filing suggesting that Zhao should be barred from leaving the U.S. until his sentencing in February, following his guilty plea to a violation of the Bank Secrecy Act.

Basis of the Argument

The attorneys representing Zhao contest the claim of the Department of Justice, stating that Zhao's voluntary arrival in the U.S. to enter his plea itself demonstrates that he is not a flight risk. The Magistrate Judge responsible for the case, Judge Brian Tsuchida, concurs with this perspective, as indicated in the recent filing.

The filing further elucidates, Given the relevant factors, such as Mr. Zhao's voluntary surrender, his intent to resolve the matter, and the substantial bail package he offered, Judge Tsuchida concluded that Mr. Zhao presents no risk of flight, even while living in the UAE.

Binance's Massive Fine Settlement and CEO Resignation

Earlier this week, Binance pleaded guilty to multiple charges in conjunction with Zhao, agreeing to pay a significant fine of $4.3 billion. As part of the agreement, the organization will implement monitors to ensure compliance and review past transactions. Additionally, Zhao has stepped down from his role as CEO, a position now held by former Binance regional markets head Richard Teng.

Despite being released on a $175 million personal recognizance bond, the question of whether Zhao can return to his home country, the UAE, where he holds citizenship and where his family is based, continues to be a point of contention between the Department of Justice and his legal team.

Conditions for Return to UAE

In the event of his return to the UAE, Zhao is obligated to re-enter the U.S. two weeks prior to his sentencing. The Department of Justice argues that the $15 million held in a trust account, and the $5 million provided by his guarantors, are sums that Zhao can afford to forfeit. However, Zhao's attorneys maintain that this argument neglects the substantial financial commitment that both Zhao and Binance have made.

Scheduled Sentencing Date

Zhao's sentencing is currently scheduled for February 23, 2024. As per his plea agreement, he could face an 18-month prison term and has agreed to a pay a $50 million fine.

Edited by Jonathan Stoker