Key takeaways:
- After entering a guilty plea, CZ has resisted attempts by the US authorities to prevent him from seeing his family in the UAE while he awaits sentencing.
- Despite the possible 18-month prison sentence, the attorneys made it clear that he has no intention of staying in the UAE to avoid his sentencing date.
After entering a guilty plea, former Binance CEO Changpeng “CZ” Zhao has resisted attempts by the US authorities to prevent him from seeing his family in the United Arab Emirates (UAE) while he awaits sentencing.
Zhao’s attorneys requested that a US District Court reject the US Department of Justice’s (DoJ) proposed modification to his bail terms in a court document dated November 23.
Zhao should be allowed to leave the United States and return to the United Arab Emirates until his sentencing in February 2024, and it was further emphasized.
According to the terms of his plea agreement, Zhao could spend up to 18 months behind bars and pay a million fine. The date of his sentencing is February 23, 2024.
Zhao’s legal team emphasizes the need to find a balance between his legal obligations and his family’s duties in the United Arab Emirates when arguing for Zhao’s right to return home in the interim. He has no intention of staying in the United Arab Emirates to evade his sentencing date, as stated by his attorneys.
“As Judge Tsuchida found, all the facts and circumstances amply demonstrate that Mr. Zhao poses no risk of flight and should be permitted to reside at home with his family in the UAE pending sentencing. The government’s motion should be denied.”
Zhao has accepted responsibility for his acts, according to Zhao’s attorneys, by taking a plane from the United Arab Emirates to the United States. The document stated:
“His intent is to resolve this case and it would be illogical to take all of these material steps without the intent to appear for sentencing,”
In a court filing on November 22, U.S. prosecutors argued that Zhao’s flight risk warranted a ban on him being allowed to leave the country.
According to the DoJ, the government will face difficulties in securing Zhao’s return if he decides not to return from the UAE for his sentencing.
But according to a bond form submitted to the court on November 21, Zhao pledged to return to the United States 14 days before his February 23, 2024, sentencing date, and had a $175M release bond.
This occurred following Zhao’s agreement to resign as CEO of Binance and his guilty plea to multiple DoJ-filed charges.
He will be able to keep his majority ownership in Binance as a result of the arrangement, but he will not be able to assume an executive role at the cryptocurrency exchange.
Though Binance’s current legal dispute with the US Securities and Exchange Commission (SEC) remains unaffected, the agreement will resolve the company’s grievances with the Commodities Futures Trading Commission (CFTC).
