United States government prosecutors are trying to stop former Binance boss Changpeng “CZ” Zhao from leaving the country, expressing concern about his potential flight risk.
In a Nov. 22 filing to a Seattle federal court, U.S. prosecutors requested a review and overturn of a judge’s decision that would allow Zhao to return to his home in the United Arab Emirates (UAE) on a $175 million bond under the condition he returns to the U.S. two weeks before his February 2024 sentencing.
In a proposed order, U.S. prosecutors wrote Zhao “presents an unacceptable risk of flight and nonappearance if he is allowed to leave the United States pending sentencing.”
In an accompanying letter, prosecutors said if Zhao decided not to come back to the U.S., then the government "would not be able to secure his return."
In its argument, the government pointed to Zhao’s ties and favored status in the UAE along with the country’s lack of an extradition treaty with the U.S. as reasons to block him from leaving the country.
Prosecutors said Zhao could live on his wealth in the UAE indefinitely as a vast majority of it is held overseas away from U.S. jurisdiction.
The government also argued Zhao’s bond was inadequate as a majority of the $175 million used to secure his release was outside the reach of the U.S.
Zhao recently confessed to failing to maintain an effective Anti-Money Laundering program at Binance and part of his plea agreement saw him step down as CEO of the exchange and pay a $50 million fine.
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