U.S. DOJ attorneys argue that Binance’s former CEO, Changpeng Zhao, could face a prison sentence of up to 10 years and should not be allowed to return to the UAE.
Amid Binance’s historic $4.3 billion settlement with U.S. authorities, the biggest issue for contention has been the duration of a possible jail term and whether former CEO Changpeng Zhao (CZ) should remain in the United States until his sentencing in February 2024.
Magistrate Judge Brian Tsuchida, who presided over Binance’s plea hearing, had given permission for Changpeng Zhao to travel back to his residence in the United Arab Emirates (UAE) this week and return to the U.S. two weeks before his sentencing next year. However, attorneys representing the U.S. DOJ have promptly pushed back against the move.
Binance’s CZ Poses Flight Risk, Says DOJ
In a court filing submitted this weekend, the attorneys argued that CZ poses a “huge flight risk” contrary to the Judge’s decision. The DOJ claims that although CZ had voluntarily traveled to the United States to file his plea, the former Binance CEO could refuse to return next year because the terms of his sentencing “would seem significant to him.”
Specifically, the DOJ argued that CZ’s attorneys claim their client only faces a brief sentence of around 12-18 months. However, the reality remains that “the United States is free to argue for any sentence up to the statutory maximum of ten years,” the DOJ filing reads.
It is in view of a potentially lengthy sentence that the DOJ believes the former Binance CEO would not be willing to return to the United States in February.
If such an outcome plays out, U.S. authorities would have little to no control as they do not have an extradition agreement with the UAE that would compel them to hand over Changpeng Zhao.
Notably, CZ had told Judge Brian Tsuchida that he received his UAE citizenship as an honor. He also noted that his voluntarily coming to the United States, the size of the settlement deal, and Binance’s reputation, means he poses no flight risk.
The court is set to review and announce its final decision on the bail terms for Changpeng Zhao on Monday. The outcome would reveal whether or not he would be allowed to travel to the UAE before sentencing. As previously reported by The Crypto Basic, the sentencing is scheduled for February 23, 2024.
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