Former Binance CEO Fights U.S. Request to Barring from UAE
Zhao Changpeng, the former CEO of Binance, is currently battling with the U.S. Justice Department over its request to prevent him from returning to his home in the United Arab Emirates (UAE) until he is sentenced for violating anti-money laundering requirements. The legal battle has taken center stage as Zhao’s defense team and prosecutors present their arguments to a U.S. judge.
Urging Rejection of Request
Zhao’s lawyers have filed a request asking U.S. District Judge Richard Jones in Seattle not to reverse bail conditions set by a magistrate judge on Tuesday, which would allow Zhao to leave the U.S. while awaiting sentencing. According to the defense team, such a decision would allow Zhao to take care of his partner and three children and prepare them for his impending sentencing.
Case Background
Zhao, who is a citizen of both the UAE and Canada, stepped down as CEO of Binance after pleading guilty to causing the global cryptocurrency exchange to fail to maintain an effective anti-money laundering program. As part of a plea deal, Binance agreed to pay more than $4.3 billion, and Zhao himself agreed to a $150 million penalty to the U.S. Commodity Futures Trading Commission. Prosecutors have indicated that Zhao faces up to 18 months in prison.
U.S. authorities have accused Binance of breaking anti-money laundering and sanctions laws and failing to report over 100,000 suspicious transactions with organizations deemed to be terrorist groups, including Hamas, al Qaeda, and the Islamic State of Iraq and Syria.
Justice Department’s Position
The Justice Department has expressed concerns about Zhao returning to the UAE prior to his sentencing, stating that it may be unable to secure his return if he chooses not to come back to the U.S. for sentencing. The department cited the lack of an extradition treaty between the U.S. and the UAE, as well as Zhao’s significant assets as reasons for its concerns.
Defense Response
Zhao’s lawyers, however, have argued that he is not a flight risk, pointing to the substantial bail package he agreed to as evidence. They also emphasized Zhao’s voluntary acceptance of responsibility by coming to the U.S. Furthermore, they asserted that allowing him to return to the UAE would not pose any risks, as he would be able to fulfill his family obligations and prepare for his sentencing.
Ongoing Legal Battle
The Justice Department, on the other hand, considers the decision to allow Zhao to remain free before sentencing as “exceptional” and argued that in most cases, a defendant with similar circumstances would be detained. The battle between Zhao’s defense team and the Justice Department is ongoing, with the final decision resting on Judge Richard Jones.
