US Prosecutors Want Binance’s Changpeng Zhao to Remain In the US, What Follows?

On Wednesday, November 22, the US prosecutors pressured a federal judge not to allow former Binance CEO Changpeng Zhao to leave the United States before the sentencing hearing on February 23, 2024.

US DoJ Wants CZ to Stay

After the $4.3 billion settlement with the US DoJ and other regulators, Binance chief Changpeng Zhao was released on a $175 million personal recognized bond.

On Wednesday, the U.S. Justice Department recommended to the judge to initiate a mandate forcing Zhao to remain in the United States. Further, the prosecutors want the judge not to allow Zhao to return to the United Arab Emirates until his sentencing.

Zhao entered a guilty plea on Tuesday for violating U.S. money laundering laws. Earlier, a spokesperson from the DOJ informed Reuters that Zhao shall be staying in the Seattle area until Monday evening. However, it was noted that post that period, he would be permitted to return to his residence in the UAE.

According to court records, Changpeng “CZ” Zhao is placing $15 million into a trust account managed by Davis Wright Tremaine, distinct from the bond. He pledges to forfeit the funds if he violates release conditions and obtains two guarantors who commit $250,000 and $100,000, respectively.

Release conditions for Zhao encompass abstaining from unlawful activities, interference with witnesses or victims, and the use of non-prescribed controlled substances—standard provisions in a bond release.

The directive appears to allow Zhao to depart the U.S., with the stipulation to return 14 days prior to sentencing.

Questions Remain Over Former Binance Chief’s Prison?

As the cryptocurrency community navigates through Changpeng Zhao’s legal challenges, there are uncertainties about the potential for a prison term despite agreeing to a significant fine. With CZ stepping down as Binance’s CEO, the exchange is entering a transformative phase under the supervision of several monitors. In an internal memo, Zhao expressed confidence in overcoming challenges, stating that the break was necessary and presented him with an opportunity.

Former SEC official John Reed Stark predicted prison for CZ under severe chances of money laundering and IEEPA violations. The important day for CZ is February 23, 2024, which will decide his fate during the sentencing hearing. The agreement with the court states that CZ can’t appeal if the sentence is less than 18 months as part of the agreement after pleading guilty.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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