Former Binance CEO Faces Travel Restrictions Amidst Extradition Concerns

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Using the phrase “unacceptable risk of flight,” US prosecutors are seeking to prevent Changpeng “CZ” Zhao, the former CEO of Binance, from leaving the country. Zhao, who founded Binance, the world’s largest cryptocurrency exchange, and his legal team have contested the government’s request to restrict his return to the United Arab Emirates (UAE) while awaiting judgment.The prosecutors argue that Zhao’s connections and privileged position in the UAE make him a flight risk. They presented evidence of his significant financial holdings and the lack of an extradition treaty between the UAE and the US, which would make repatriation difficult.Zhao recently pleaded guilty to failing to maintain an effective anti-money laundering program. As part of a global agreement, he, Binance, and several US agencies agreed to pay $4.3 billion in fines and penalties.The prosecutors also raised concerns that if Zhao avoids the consequences of his actions, he could potentially forfeit over $20 million and live comfortably in the UAE for the rest of his life.Zhao’s legal team strongly disagrees with the prosecutors’ request and is challenging the ruling. They argue that his wealth and foreign citizenship do not increase his likelihood of fleeing. Zhao has voluntarily appeared in court and offered a substantial bond as a demonstration of his commitment to following the law.Regarding sentencing, Zhao’s lawyers have suggested the possibility of advocating against imprisonment. They propose that he could serve half of any prison term in a non-jail setting, such as home detention or community confinement. They plan to reference similar cases to support their argument for his release.The main question in this case is whether Zhao can remain in the US until his sentencing on February 23, 2024, or if he will be allowed to return to the UAE. This decision will have significant implications for Zhao’s future and the cryptocurrency market as a whole.Meanwhile, the price of BNB, Binance’s native cryptocurrency, has experienced a slight decrease, trading at $235.

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