Changpeng Zhao Banned From Traveling To The UAE, Former Binance CEO Threatened With 10 Years In Prison
JAKARTA - The founder of Binance, Changpeng Zhao or CZ, is increasingly stuck in a legal case involving him with the US Department of Justice (DOJ). The US government pushed for travel restrictions until the verdict was handed down to the former binance boss.
It didn't stop there, DOJ also demanded that CZ be sentenced to 10 years in prison. The Binance founder has previously pleaded guilty to the violation of the Bank Secretariat Act. DOJ's lawyers also highlighted the risk of CZ's escape to the United Arab Emirates (UAE), where he has wealth and has citizenship there.
In a court filing on Saturday night, November 25, DOJ lawyers urged the court that Zhao should be in the United States until he was sentenced to court. DOJ also hopes that CZ is prohibited from traveling to his home in the UAE.
This emerged in response to Judge Total Judge Brian Tsuchida's decision to allow CZ to travel and stay in the UAE for up to two weeks before his sentence was handed down. The US Department of Justice said it was shocked by Judge Tsuchida's decision.
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The DOJ stressed that in many cases, a defendant like CZ, who has pleaded guilty and faces a possible prison sentence, will be detained or, at least, be prohibited from leaving the US.
The DOJ also highlighted the interconnected nature of CZ and Binance, by filing criminal charges against CZ for violating the Bank's Privacy Act regarding anti-money laundering prevention, which resulted in a settlement of a $4.3 billion fine for the exchange. This is the largest number of sanctions in the history of the US Treasury and FinCEN.
In addition, DOJ considers Changpeng Zhao's allowing to visit the UAE has the potential to pose a great risk of escaping from legal counsel from the US government. The US Department of Justice also argues that Zhao's special status as an UAE citizen, obtained through an invitation, could prevent his extradition back to the United States. Changpeng Zhao is scheduled to undergo trial on February 23, 2024.