Binance: What If CEO CZ Fled?

The Binance affair takes an unexpected turn as U.S. prosecutors attempt to prevent the former CEO CZ from leaving the United States. The risk of flight looms, raising crucial questions about the future of the crypto exchange.

U.S. prosecutors don’t want CZ to leave the U.S. and filed a motion to overturn a judge’s ruling allowing him to return to the UAE before his sentencing in February. https://t.co/OVX0LY9xyz

— Cointelegraph (@Cointelegraph) November 23, 2023

The DOJ fears the escape of former Binance CEO, CZ

While the former head of Binance had won the favor of Federal Judge Alison Nathan, U.S. prosecutors are concerned about a flight risk. According to them, the $175 million bail is not sufficient to ensure CZ’s presence in the United States. The DOJ even goes so far as to underline:

• Zhao’s close ties to the United Arab Emirates,
• the absence of an extradition treaty between the two countries.

This situation creates a crucial dilemma. If the former CEO of Binance decides to stay in the United Arab Emirates after his authorized departure, the U.S. government will indeed have to admit that it could not ensure his return. The question of financial responsibility and assurances of his presence during legal proceedings therefore becomes central to this heated debate.

Why is the DOJ challenging the Federal Judge’s decision?

The concerns of U.S. prosecutors are rooted in the family and financial ties of Changpeng Zhao to the United Arab Emirates. Indeed, the former Binance CEO has three young children and a partner there. The DOJ fears that once back in his home country, Zhao may choose not to return to the United States to face a possible prison sentence.

That’s not all! Most of the personal fortune of the founder of Binance is abroad, outside the jurisdiction of the United States. The question of the government’s ability to seize these assets in the event of a potential escape thus complicates the situation.

The CZ case raises crucial questions about the integrity of Binance and the future of the crypto industry. Despite the turmoil around Binance and its former CEO, the crypto market is nevertheless showing remarkable resilience. Proof: the total market capitalization reached $1.48 trillion during Thursday morning’s Asian trading session.