Last week, Binance CEO Changpeng Zhao, also known as “CZ,” suddenly resigned. This was part of a settlement with the US Department of Justice. However, the ministry had reservations about accepting his release on bail because he was at risk of absconding. However, she no longer sees this as a major risk.
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Ex-CEO of the largest crypto exchange does not pose a flight risk
Zhao was released on bail last week. Since he was suspected of fraud, among other things, he could face a prison sentence of 18 months. This will be communicated to the CEO on February 23rd. For now, prosecutors considered a hefty fine of $4.3 billion for Binance and a $50 million fine for CZ to be sufficient.
However, he will be released on bail subject to certain conditions. For example, he cannot simply go abroad, but must obtain permission from the American government. He would be a flight risk.
The ex-CEO has minimal civil ties with the United States, which would give him the opportunity to flee once he leaves the country. But CZ didn’t agree to that, he wanted to be with his family in the United Arab Emirates (UAE) and had no intention of fleeing.
According to legal documents seen by CoinDesk, prosecutors now agree with Zhao’s lawyer. CZ would not be a flight risk even if he left for the United Arab Emirates. The prosecution changed course because CZ showed an intention to solve the case. He has also posted bail of more than $190 million and disclosed his intention to remain abroad with his family.
CZ remains a Bitcoin billionaire, Binance continues
The $4.3 billion fine is one of the largest in the history of the financial world, but the $50 million fine for CZ itself doesn’t seem too bad. It is unknown how much crypto CZ owns, but from the looks of things, he remains a billionaire. Binance will also continue its work.
It has now become known that CZ is not allowed to leave the country for the time being. Even if they do not see the CEO as a flight risk, the judges and the American government agree that he should not be allowed to leave the country for his hearing on February 23rd.
Otherwise they would have arrested a multi-billionaire who faces a possible prison sentence and wants to emigrate to a country without an extradition treaty. Even Zhao is not spared in order to avoid contradictions. He will have to wait until after February to see his family in the United Arab Emirates.
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