US Prosecutors Make Moves To Stop CZ From Leaving The United States
US prosecutors seek to keep ex-Binance CEO Zhao in the country, fearing flight risk; crypto markets rebound after Binance settlement.
Prosecutors in the United States are making efforts to prevent former Binance CEO Changpeng Zhao from leaving the country, believing he may not return. They are contesting a court ruling that allowed him to go to the UAE on a $175 million bond with the condition that he return before his February 2024 sentencing.
If Zhao is allowed to leave the country, prosecutors fear he will flee. In a letter, they voiced worry that getting him to return from the UAE would be difficult, especially considering the UAE's absence of an extradition treaty with the US.
Zhao has considerable family relationships in the UAE and a huge fortune overseas, causing prosecutors to believe that he may choose to stay in the UAE rather than face an 18-month prison sentence in the United States.
As part of his plea agreement, Zhao admitted to flaws in Binance's anti-money laundering program and agreed to pay a $50 million fine. Regardless of his legal troubles, the crypto market views Binance's settlement with the Justice Department positively, seeing it as legitimizing the industry in the United States.
After the Binance news, The cryptocurrency markets have recovered, with total market capitalization recovering to pre-Binance levels, reaching $1.48 trillion in the Asian trading session.
