1. Home
  2. Flight Risk

Flight Risk

Judge Bars Former Binance CEO Changpeng Zhao From Leaving the US Until His Sentencing Slated for February

Judge Bars Former Binance CEO Changpeng Zhao From Leaving the US Until His Sentencing Slated for February

A judge has ruled that former Binance chief executive Changpeng Zhao is a flight risk and has banned him from leaving the US until he’s sentenced in February. In a new court filing, Magistrate Judge Brian Tsuchida made a ruling in favor of the prosecution, who claimed Zhao’s wealth and citizenship with other nations that […]

The post Judge Bars Former Binance CEO Changpeng Zhao From Leaving the US Until His Sentencing Slated for February appeared first on The Daily Hodl.

CFTC commissioner urges US crypto policy reforms

CZ an ‘unacceptable risk of flight,’ should stay in US: DOJ

U.S. prosecutors are pushing for CZ to stay in the country, saying they “would not be able to secure his return” if he’s allowed back to Dubai.

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.

“He has three young children and a partner in the UAE; once in the UAE and faced with the prospect of traveling back to the United States to face up to 18 months in prison, he may elect to instead simply stay in the UAE with his family.”

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.

Excerpt of the motion to review Zhao’s bond conditions. Source: PACER

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.

Related: Binance’s DOJ settlement offers a glimmer of hope for the crypto industry

Industry experts and observers have argued that Binance’s settlement with the Justice Department is a positive outcome for the crypto industry, further legitimizing it in the U.S.

Additionally, crypto markets have already rebounded from the bad news regarding one of the industry’s most enigmatic and influential players.

Total market capitalization has already returned to pre-Binance news levels, hitting $1.48 trillion during the Thursday morning Asian trading session.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

CFTC commissioner urges US crypto policy reforms

Report: Terra Co-Founder Do Kwon Plans to Appeal Detention Extension After Arrest in Montenegro

Report: Terra Co-Founder Do Kwon Plans to Appeal Detention Extension After Arrest in MontenegroAccording to the Montenegro-based newspaper Vijesti, Do Kwon, the co-founder of Terraform Labs, also known as Kwon Do-hyung, is appealing the detention extension ordered by a Montenegrin court. Kwon was arrested on March 23, 2023, after being caught at Podgorica Airport in Montenegro while traveling with fraudulent identification documents. Report Says Kwon’s Legal Representation Aims […]

CFTC commissioner urges US crypto policy reforms

An In-Depth Look at the Couple Accused of Laundering 94,636 Bitcoin From the 2016 Bitfinex Hack

An In-Depth Look at the Couple Accused of Laundering  94,636 Bitcoin From the 2016 Bitfinex HackOn Tuesday, the U.S. Department of Justice (DOJ) arrested two individuals that are accused of an “alleged conspiracy to launder” 94,636 bitcoins stolen from Bitfinex in 2016. Interestingly, both of the suspects are known individuals within the tech industry as Ilya Lichtenstein was the co-founder of Mixrank, a Y-Combinator backed startup and Heather Morgan was […]

CFTC commissioner urges US crypto policy reforms