Changpeng Zhao (CZ), the co-founder and former CEO of Binance, is not permitted to leave the United States after federal prosecutors asked to review a Seattle magistrate’s initial decision.
The prosecutors’ arguments are centered on three points: the U.S. cannot extradite CZ from the United Arab Emirates; his connections to his home country present significant risk; and his bail package is inadequate to ensure his return.
As per the court document filed on Wednesday, Zhao holds citizenship in both the UAE and Canada. The “extraordinary circumstances” surrounding how he obtained his UAE citizenship suggest his “favored position” in the country, according to the filing.
It’s worth noting that one cannot simply apply for UAE citizenship; it must be offered by the government itself. Hence, Zhao’s return could mean the UAE might not agree to a request to extradite him for sentencing if he decides not to return voluntarily.
During the plea hearing, Zhao stressed before the magistrate the essence of his family (who presently reside in the UAE) in arguing for his return to the country. The magistrate allowed Zhao to go back home, provided that he returned to the U.S. 14 days before his sentencing on February 23, 2024.
After hearing the court’s decision, some members of the crypto community seem dissatisfied. A pseudonymous trader, known as Doctor Profit, wrote on X that Zhao “did nothing wrong” and people were disrespecting him.
Many people disrespecting CZ
He did nothing wrong, funds SAFU
He protected users funds and data
Now with the new CEO, #Binance will be forced to report your data to local tax authorities, especially for US and Europe users
— Doctor Profit 🇨🇭 (@DrProfitCrypto) November 23, 2023
Versan Aljarrah, the founder of Black Swan Capitalist, also weighed in on the matter, suggesting that the confession of Binance’s former CEO could be connected to “external pressures of threats, bullying, and intimidation”.
Moreover, Aljarrah mentioned the speculative possibility of a strategic move to “weaponize the SEC” and “use regulatory enforcement” to consolidate Binance and its Bitcoin assets.
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