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Former Binance CEO Changpeng Zhao (CZ) has requested permission from a U.S. judge to leave the country before his sentencing for anti-money laundering violations.
As part of his plea deal, Binance, the cryptocurrency exchange, would pay over $4.3 billion, while Zhao himself would face a $150 million penalty and a potential 18-month prison sentence.
Here are some additional details:
- Zhao's lawyers are arguing against reversing his bail conditions and are advocating for his return to the United Arab Emirates (UAE) while he awaits sentencing.
- Zhao, who holds citizenship in both the UAE and Canada, resigned as Binance CEO after admitting to failures in the company's anti-money laundering program.
- The U.S. Justice Department opposes Zhao's request to leave the country before sentencing, citing the lack of an extradition treaty between the UAE and the U.S.
- Zhao's legal team asserts that he is not a flight risk and highlights his need to care for his family and prepare for the upcoming sentencing.
- The Justice Department, on the other hand, considers allowing Zhao to remain free before sentencing as an exception, focusing on managing flight risk through travel restrictions.
In a broader context, prosecutors have recently filed documents indicating that Zhao has agreed to pay a $150 million fine to the U.S. Commodity Futures Trading Commission and could potentially face up to 18 months in prison.
Zhao and others were charged with breaching the Bank Secrecy Act by failing to establish a robust anti-money laundering program and intentionally violating U.S. sanctions for financial gain, according to the Justice Department.