Here’s why Binance CEO CZ is still in US prison.

In documents filed in DOJ court Saturday night, DOJ lawyers reiterated that Zhao should be restricted to the continental United States and prohibited from leaving. In the document, they emphasized that the government could argue for Zhao to be sentenced to 10 years in prison, but sentencing guidelines recommend a prison term of 18 months.

“The defense argues that Mr. Zhao only received a “simple” sentence and had no reason to flee,” the filing states. “The reality is that the upper end of the guideline range can be as high as 18 months, and the United States is free to argue for sentences up to the statutory maximum of 10 years. As the defense will clearly emphasize at sentencing, Mr. Zhao has a family and has never been detained for a single day. “The punishment he will receive at sentencing will undoubtedly appear significant to him, and this weighs in favor of the reasonable restrictions proposed by the United States.”

A federal judge in Seattle has refused to allow Binance CEO Changpeng Zhao to return to his home country of the United Arab Emirates (UAE) before he is sentenced on February 23, 2024. Zhao must remain in the United States, at least for now.

Zhao’s lawyers asked that their client be allowed to return, arguing that Zhao “voluntarily flew to the United States” to plead guilty. But the UAE has no formal extradition treaty with the United States, and the government doesn’t want to take the risk. U.S. District Judge Richard A. Jones in Seattle ruled that Zhao cannot return “until this court resolves the government’s motion for reconsideration.”

The government described the incident as follows: “In most cases, billionaire defendants who plead guilty could face jail time, and if they live in a country that does not extradite its citizens to the United States, they will be detained.”

Prosecutors claimed that they had already issued an “exceptional recommendation” not to detain Zhao Zedong prior to sentencing. They argue that Zhao represents a flight risk but “can be managed by requiring him to remain in the United States and preventing his return to the safe haven of the UAE.”

Zhao and others violated the Bank Secrecy Act by failing to implement an effective anti-money laundering program and imposed U.S. economic sanctions “in a deliberate and calculated effort to profit from U.S. markets without implementing the controls required by U.S. law.” Charged with willful violation. “According to the Department of Justice.

The $4.3 billion conviction is the largest fine in the history of the U.S. Treasury and FinCEN. “This massive settlement reflects the serious nature of Binance’s conduct, high trading volume, and intensity of senior management involvement,” John Reed Stark wrote on Twitter.

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Zhao faced numerous challenges and controversies that ultimately led to his downfall. One of the early and important controversies was accusations of insider trading. Critics claimed Binance manipulated the markets by giving privileged traders early access to new listings.

The scandal has undermined trust in Binance’s integrity and raised concerns about compliance with regulatory standards. The most recent plea deal only helps confirm those suspicions.

Binance supports terrorists, ransomware attackers, money launderers, including Hamas’ al-Qassam Brigades, Palestinian Islamic Jihad (PIJ), al-Qaeda, and the Islamic State of Iraq and Syria (ISIS), as well as users based in the United States, Iran, North Korea, Syria, and Crimea, Ukraine. In addition to facilitating transactions between users located in sanctioning jurisdictions, such as territories, they are also committing other crimes. The DoJ writes:

“Mr. Zhao has no ties to the United States. His family lives in the UAE and he has wealth and properties abroad, including in the UAE. Mr. Zhao is not simply a citizen of the UAE, but obtained citizenship by invitation and is living there. “We have a preferential status,” the filing reads. “While Mr. Zhao characterizes this invitation and citizenship as an “honor” that he will not use to avoid U.S. law, it demonstrates his strong relationship with the UAE. This connection should be taken into account. “There is no reason to believe that the UAE will hand Mr. Zhao over if he decides not to return to the United States to serve an uncertain sentence.”

Clearly the DoJ wants Zhao to be in the United States. Perhaps the agency suspects that continued monitoring of Binance or other incriminating trading requirements could reveal additional indictable offenses and does not want to miss the opportunity to convict Zhao, who is already in the United States.

Also Read: What Signs Binance’s $4.3 Billion Fine and CZ’s Crypto Resignation?