The legal tussle involving Binance founder Changpeng Zhao, commonly known as CZ, has entered a critical phase, as the Department of Justice (DOJ) is advocating for strict travel restrictions and a potential ten-year prison sentence.

DOJ’s Surprising Response to Judge’s Decision

The DOJ’s response comes after Magistrate Judge Brian Tsuchida granted CZ permission to live in the UAE until two weeks before his sentencing, a decision that caught the DOJ off guard.

Additionally, the DOJ highlighted CZ’s association with Binance, as the founder faces a felony charge for violating the Bank Secrecy Act, resulting in a historic $4.3 billion settlement, the largest in the history of the US Treasury and FinCEN.

Concerns over Flight Risk and Sentencing

US DOJ Proposes 10-Year Jail Term for Binance Founder

The DOJ underscored CZ’s lack of ties to the US, his familial and financial connections in the UAE along with the potential difficulty in extradition, given his special citizenship status obtained through invitation. While expectations initially pointed to a 12–18-month sentence, the DOJ’s court filing suggests a possibility of arguing for the statutory maximum of ten years during CZ’s sentencing.

Future Proceedings and Binance’s Transition

The court has scheduled the sentencing hearing for Binance Founder CZ on February 23, 2024, with potential changes pending. An imminent decision regarding CZ’s travel privileges to the UAE before sentencing is anticipated.

Further, as the legal saga unfolds, the outcome for Binance remains uncertain. The DOJ’s strategies and ongoing monitoring of Binance may reveal more actionable offenses, adding complexity to the situation. Meanwhile, the exchange is undergoing a transition phase with the appointment of Richard Teng – a seasoned professional in the financial ecosystem, as CZ’s successor.

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Tanishi is an established writer in the realm of cryptocurrency and blockchain, renowned for her expertise and insightful analysis. With a deep-rooted passion for the dynamic world of digital finance, Tanishi delivers compelling news and articles that captivate a wide-ranging audience.