- The DOJ argues Binance’s former CEO Changpeng Zhao poses a “manageable flight risk” if he stays in the U.S. until his criminal case concludes, but is a serious flight risk if he leaves the country.
- Zhao faces charges related to Binance allegedly enabling money laundering and sanctions violations. He remains at large outside the U.S.
- Prosecutors and Zhao’s lawyers continue negotiating bail terms requiring him to remain in the U.S., as the DOJ’s larger criminal case against Binance and its executives moves forward.
The U.S. Department of Justice (DOJ) argues that Binance’s former CEO should remain free until sentencing – but only in the U.S.
Background on Changpeng Zhao and Binance
Changpeng Zhao, also known as CZ, is the founder and former CEO of Binance, the world’s largest cryptocurrency exchange.
In November 2022, federal prosecutors in Manhattan filed conspiracy and money laundering charges against Zhao related to Binance’s alleged role in enabling money laundering and sanctions violations. Despite the charges, Zhao remains at large outside the U.S.
Zhao stepped down as CEO of Binance in 2022 but still serves as a strategic advisor to the company. Binance operates globally, with users in over 180 countries.
DOJ: Zhao Is a ‘Manageable Flight Risk’ If He Stays in U.S.
In a court filing, federal prosecutors argued that if Zhao remains in the U.S. until the resolution of the criminal case, he would be a “manageable flight risk.”
However, they expressed concern that Zhao poses a serious flight risk if he were to leave the country before the case concludes. Prosecutors pointed to Zhao’s vast wealth and foreign citizenship as reasons he may try to evade prosecution by leaving the U.S.
Prosecutors recommended several bail conditions, including a $500,000 personal recognizance bond secured by $15 million in assets. They also proposed limiting Zhao’s travel to parts of California and New York.
Zhao Seeks Broader Allowed Travel Areas
Lawyers for Zhao opposed the DOJ’s proposed limitations on his U.S. travel, arguing the conditions are too restrictive. They proposed allowing him to also travel to Seattle, where Binance has an office.
Zhao’s lawyers contended that their client has been cooperative with the investigation and does not pose a flight risk. They pointed to Zhao’s compliance with U.S. tax obligations and his willingness to face the criminal charges.
Ongoing Criminal Case Against Binance and Zhao
The charges against Zhao are part of a larger criminal investigation into Binance’s operations. Prosecutors allege that Binance intentionally designed its business to evade regulatory scrutiny and profit from illegal transactions.
Besides Zhao, Binance itself and several other company executives have been charged. Zhao could face up to 30 years in prison if convicted.
The criminal case against Binance is ongoing. Zhao has yet to appear in U.S. court to face the charges. Prosecutors and Zhao’s defense team continue to negotiate the terms of his bail as the case moves forward.
Conclusion
The DOJ believes Binance’s founder won’t flee prosecution if required to remain in the U.S. leading up to his trial. However, they view Zhao as a flight risk if he leaves the country. As negotiations continue over Zhao’s bail terms, the government’s criminal case against Binance proceeds.
