Lawyers representing former Binance CEO Changpeng Zhao are urging a U.S. judge to decline the Justice Department's request to prevent him from returning to his home in the United Arab Emirates until his sentencing for violating anti-money laundering requirements.
In a filing on Thursday, Zhao's legal team requested U.S. District Judge Richard Jones in Seattle not to overturn the bail conditions set by a magistrate judge on Tuesday, allowing Zhao to depart the U.S. while awaiting sentencing.
Zhao, a citizen of the UAE and Canada, resigned as CEO of Binance on Tuesday after pleading guilty to wilfully causing the global cryptocurrency exchange to fail in maintaining an effective anti-money laundering program.
U.S. authorities alleged that Binance violated U.S. anti-money laundering and sanctions laws. Binance failed to report over 100,000 suspicious transactions with organizations classified by the U.S. as terrorist groups, including Hamas, al Qaeda, and the Islamic State of Iraq and Syria.
As part of a plea deal, the company agreed to pay over $4.3 billion, and Zhao agreed to a $150 million penalty to the U.S. Commodity Futures Trading Commission. Prosecutors, in a Wednesday filing, stated that he could face up to 18 months in prison.
The Justice Department has requested Judge Jones to reverse a decision by U.S. Magistrate Judge Brian Tsuchida by Monday, preventing Zhao from returning to the UAE before his Feb. 23 sentencing, despite being released on a $175 million bail bond.
The government expressed concerns that it might be challenging to ensure Zhao's return, given the absence of an extradition treaty with the UAE and Zhao's considerable assets as a multi-billionaire.
However, Zhao's legal team argued that he had demonstrated he was not a flight risk by accepting a substantial bail package and voluntarily coming to the U.S. to take responsibility for his actions.
They asserted that permitting Zhao to return to the UAE would enable him to care for his partner and three children and prepare for his upcoming sentencing.
In response, the Justice Department, in a brief on Friday, characterized its decision to recommend Zhao's freedom before sentencing as "exceptional." They stated that this recommendation was based on the belief that the risk of his flight could be managed by restricting his travel. Highlighting that such an outcome is rare for a multi-billionaire defendant facing possible prison time in a non-extradition country.
