The legal tussle between former Binance CEO Changpeng Zhao (CZ) and the Department of Justice (DOJ) has continued to stir discussion within the crypto community.
Consequently, investors speculate on whether the crypto entrepreneur will be allowed to leave the United States before his sentencing in February 2024.
Binance Legal Team Opposes US Government
It is no longer news that CZ was recently released on a $175 million bond bail after he pleaded guilty to violating the Bank Secrecy Act. Despite his release, the DOJ has expressed concern about CZ traveling to the United Arab Emirates (UAE), where his family resides.
The DOJ previously cited CZ’s substantial wealth and foreign citizenship as possible factors that could motivate him not to return to the US if he eventually leaves.
Expectedly, CZ’s legal team, in a recent filing, made contrary arguments, highlighting the Binance founder’s past compliance efforts and financial commitments.
“As Judge Tsuchida concluded based on a complete record, Mr. Zhao presents no risk of flight, having voluntarily come before the Court to accept responsibility and plead guilty, and the government’s motion should be denied,” CZ’s legal team said.
Binance and CZ Plead Guilty
For context, CZ and Binance pleaded guilty to violating U.S. laws. While Binance agreed to pay a whopping $4.3 billion fine, CZ, who was released on a $175M bond bail, will be sentenced on February 23, 2024.
Before CZ pleaded guilty to violating the Bank Secrecy Act, the Binance founder faced a sentence of up to 10 years. At the moment, CZ could spend up to 18 months in prison due to his plea agreement.
The judge may impose additional fines instead of sentencing the former Binance CEO to jail.
Notably, the entire settlement sum will be split among three federal agencies, including the U.S. Office of Foreign Assets Control (OFAC), the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN).
All three federal agencies were part of the legal tussle against Binance, each filing different charges against the platform. It is worth mentioning that the charges filed against Binance and CZ do not include fraud, market manipulation, or misappropriation of users’ funds.
Instead, the charges are compliance-related, which stems from the exchange’s formative years (2017 – 2019). Binance, in an official statement, admitted that it had a loose compliance policy in its early years that made it easy for terrorist organizations like Hamas to fund its operations via the exchange. However, Binance assured users that it has since beefed up compliance with significant hires.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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