New documents reveal that prosecutors have filed documents seeking to ban former Binance CEO Changpeng Zhao from leaving the US.
In a new lawsuit, the government argues that Zhao, a citizen of two other countries, poses a “significant flight risk” after pleading guilty to failing to comply with adequate anti-money laundering protocols for Binance, the world’s largest crypto exchange platform by volume.
“As a non-U.S. citizen of the UAE (United Arab Emirates) with significant wealth outside the United States, minimal ties to the United States, and a residence in a country without an extradition treaty with the United States, Zhao poses a serious risk of flight and [it is] requested that he be required to remain in the continental United States pending sentencing.
However, Zhao successfully got Judge Brian Tsuchida on his side by arguing that he should be allowed to return to the UAE because he had already posted bail.
“Zhao argued that he should be allowed to return to his home in the UAE under a $175 million bond, secured by $15 million in cash in escrow and three responsible persons pledging property or cash.
After considering these arguments, Magistrate Judge Tsuchida ruled that Zhao could return to his home in the UAE pending sentencing on a sham bond secured by the collateral described above.”
Zhao pleaded guilty earlier this week to violating anti-money laundering laws and resigned from his role as CEO of Binance after the cryptocurrency exchange agreed to pay a massive $4.3 billion fine to the Department of Justice (DOJ).
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on TweetFacebook and Telegram
Surf to the Daily Hodl mix
Featured image: Shutterstock/Pavel Chagochkin