DOJ Asserts CZ Flight Risk in Bond Terms Dispute

The DOJ wants the court to compel CZ to stay in the continental U.S. in the period between his plea and sentencing.

Changpeng Zhao sitting on a plane wing looking up.
Created by Kornelija Poderskytฤ— from DailyCoin
  • CZ might not be allowed to travel to the UAE after his plea deal.
  • The DOJ asserted his flight risk in the latest court filing.
  • Earlier, Judge Tsuchida cast doubt on whether CZ is a flight risk.

Despite agreeing to a $50 million fine as part of a guilty plea deal and a $175 million personal recognizance bond to secure his release from custody, Binance ex-CEO Changpeng โ€œCZโ€ Zhao is still tormented by his legal woes in the U.S.

While ruling on CZโ€™s bond terms on November 21, Magistrate Judge Brian A. Tsuchida allowed the embattled former CEO to travel to the UAE, noting that he wouldnโ€™t have entered a plea in person if he carried the risk of escaping. Notably, CZ wasnโ€™t obliged to appear in court in person on that day.

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But the Department of Justice (DOJ) doesnโ€™t buy this.

CZ Shouldnโ€™t Travel to the UAE Before Sentencing

In a filing dated November 22, federal prosecutors submitted that CZ should be required to stay in the U.S. between his plea and sentencing, arguing that the defendant couldnโ€™t prove that he wouldn’t flee once allowed to return to the UAE.

Specifically, the prosecutors stated that CZ had โ€œsubstantial connectionsโ€ to the UAE, which led him to obtain his citizenship to the country โ€œthrough extraordinary circumstances.โ€

According to the prosecutors, this โ€œfavored positionโ€ indicated that the UAE government would likely not accede to a U.S. government request to expel Zhao to the country for sentencing should he choose not to return as agreed.

While acknowledging the U.S. has no extradition treaty with the UAE, prosecutors submitted further grounds supporting the motion to ground CZ in the U.S., including strong family ties and a financial war chest.

CZโ€™s Strong Family Ties and Financial Muscle

The prosecution averred that CZ wouldnโ€™t leave his family to travel to the U.S. and face a possible prison sentence.

โ€œAs Zhao explained during the hearing, he has three young children and a partner in the UAE; once in the UAE and faced with the prospect of traveling back to the United States to face up to 18 months in prison, he may elect to instead simply stay in the UAE with his family.โ€ The prosecution argued.

The DOJ also expressed concerns about CZโ€™s โ€œsignificant bail package,โ€ arguing that it was inadequate to ensure his return, given that most of the assets tied to the bond were beyond the governmentโ€™s reach.

Further, the prosecution stated that CZ is a multibillionaire who could stand to lose over $20 million to compensate his guarantors and โ€œlive comfortably for the rest of his life in the UAEโ€ should he choose to skip sentencing.

Read more about the Binance-DOJ settlement and CZโ€™s resignation:
Hereโ€™s What Binanceโ€™s $4B Settlement and CZโ€™s Resignation Means

Stay updated on how the market reacted to Binance enforcement:
Market Conflicted as CZ Quits and Binance Settles with DOJ

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Brian Danga

Brian Danga is a crypto reporter at DailyCoin covering breaking news. Brian has minor holdings in Bitcoin and Ethereum.

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