Binance’s Changpeng Zhao will not go to jail: US Department of Justice | CoinDesk JAPAN

The US Department of Justice does not want Binance founder Changpeng Zhao, also known as CZ, to remain in prison until he is sentenced, but it also does not want him to leave the US. In the new filing, it says there is a “manageable flight risk.”

Last weekend, Zhao’s lawyers argued that the very fact that he, a non-American citizen with United Arab Emirates (UAE) and Canadian passports, voluntarily entered the United States to appear in court , which they argued showed he was not a flight risk.

“Based on all the relevant facts, including Mr. Zhao’s voluntary appearance, his intention to resolve this case, and the large amount of bail he had proposed, Judge Brian Tsuchida ruled that Mr. Zhao was “We have determined that he does not pose a flight risk even if he is in the area,” the filing said last week.

But federal prosecutors objected, arguing that the potential severity of the sentence would provide an incentive to return to the UAE, which does not have an extradition treaty with the United States. Last week, prosecutors said Mr. Zhao has “minimal ties to the United States” because he is a UAE citizen and said he may not return if he is allowed to leave.

“In fact, the United States is free to pursue up to the statutory maximum sentence of 10 years,” the filing says. “The penalties he faces at sentencing undoubtedly appear significant to him, which would weigh in favor of any reasonable restrictions proposed by the United States.”

On November 21, Zhao pleaded guilty to violating anti-money laundering laws in the United States and resigned as CEO of Binance. Meanwhile, the exchange admitted multiple criminal and civil charges and agreed to pay a fine of $4.3 billion (approximately 645 billion yen, equivalent to 150 yen per dollar). This is the largest fine in U.S. Department of Justice history.

Fellow former cryptocurrency exchange executive Sam Bankman-Fried, who is also awaiting sentencing, remains in custody.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Shutterstock
｜Original text: Binance’s Changpeng ‘CZ’ Zhao Is a Manageable Flight Risk: US DOJ