Former Binance CEO Seeks to Return to UAE
Legal Battle
Former Binance CEO, Zhao Changpeng, is fighting to return to the United Arab Emirates amidst legal battles with the U.S. Justice Department. Zhao’s lawyers are urging a U.S. judge to reject the Department’s request to bar him from returning to the UAE until he is sentenced for violating anti-money laundering requirements.
Plea Deal and Resignation
Zhao, a citizen of the UAE and Canada, stepped down as CEO of Binance after pleading guilty to willfully causing the 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 agreed to pay a $150 million penalty to the U.S. Commodity Futures Trading Commission.
Legal Filings and Sentencing
Zhao’s lawyers filed a request asking U.S. District Judge Richard Jones in Seattle not to reverse bail conditions set by a magistrate judge, which would allow him to leave the U.S. while awaiting sentencing. Prosecutors said Zhao may face up to 18 months in prison, and the Justice Department has requested the judge to reverse the decision to allow Zhao to return to the UAE ahead of his sentencing.
Defense Arguments
Zhao’s defense argued that he was not a flight risk as he voluntarily came to the U.S. to accept responsibility for his actions. They also emphasized his substantial bail package and his willingness to face the consequences of his actions. His lawyers also noted that allowing Zhao to return to the UAE would enable him to take care of his partner and three children and prepare them for his sentencing.
Justice Department’s Response
The Justice Department, however, argued that the decision to recommend Zhao remain free before sentencing was “exceptional” and was made only because they believed the risk of flight he posed could be managed by restricting his travel. They also highlighted the challenges of securing his return if he chooses not to come back to the U.S. for sentencing, as there is no extradition treaty with the UAE and Zhao is a multi-billionaire with significant assets.
In summary, the legal battle between Zhao and the Justice Department continues as the former CEO seeks to return to the UAE while awaiting sentencing for his involvement in violating anti-money laundering requirements. The court’s decision on whether to allow him to return home will have significant implications for the outcome of this high-profile case.
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