{"id":87502,"date":"2023-11-24T19:48:52","date_gmt":"2023-11-24T17:48:52","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=87502"},"modified":"2025-09-13T12:14:03","modified_gmt":"2025-09-13T09:14:03","slug":"lawyers-challenge-motion-to-bar-changpeng-zhao-from-leaving-the-united-states","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/lawyers-challenge-motion-to-bar-changpeng-zhao-from-leaving-the-united-states\/","title":{"rendered":"Lawyers challenge motion to bar Changpeng Zhao from leaving the United States"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>Lawyers are confident there is no need to amend Changpeng Zhao&#8217;s release terms.<\/li>\n<li>Former SEC lawyer John Reed Stark suggested that the district judge&#8217;s ruling could be overturned.<\/li>\n<li>Opinions in the community about the former Binance chief&#8217;s guilt are divided.<\/li>\n<\/ul>\n<\/div>\n<p>Changpeng Zhao (CZ) and his team of lawyers <a href=\"https:\/\/www.johnreedstark.com\/wp-content\/uploads\/sites\/180\/2023\/11\/Zhao-Opposition-.pdf\">\u043f\u043e\u0434\u0430\u043b\u0430<\/a> \u0432\u043e\u0437\u0440\u0430\u0436\u0435\u043d\u0438\u0435 \u043d\u0430 \u0445\u043e\u0434\u0430\u0442\u0430\u0439\u0441\u0442\u0432\u043e \u043f\u0440\u043e\u043a\u0443\u0440\u043e\u0440\u043e\u0432 \u043e \u043f\u0435\u0440\u0435\u0441\u043c\u043e\u0442\u0440\u0435 \u0435\u0433\u043e \u0442\u0435\u043a\u0443\u0449\u0438\u0445 \u0443\u0441\u043b\u043e\u0432\u0438\u0439 \u043e\u0441\u0432\u043e\u0431\u043e\u0436\u0434\u0435\u043d\u0438\u044f. The gist is that the measures imposed are sufficient.<\/p>\n<h2 class=\\\"wp-block-heading\\\"><strong>What should persuade the court?<\/strong><\/h2>\n<p>On November 21, in the course of <a href=\"https:\/\/u1f987.com\/en\/news\/changpeng-zhao-to-pay-50-million-under-u-s-doj-settlement\">a deal with the U.S. Department of Justice<\/a> the exchange decided to pay $4.3 billion, and CZ <a href=\"https:\/\/u1f987.com\/en\/news\/media-changpeng-zhao-to-step-down-as-binance-to-pay-4-3-billion-in-penalties\">\u0441\u043e\u0433\u043b\u0430\u0441\u0438\u043b\u0441\u044f<\/a> to step down as chief executive and to pay a $50 million fine.<\/p>\n<p>He <a href=\"https:\/\/u1f987.com\/en\/news\/binance-founder-changpeng-zhao-released-on-175-million-bond\">\u0432\u043d\u0435\u0441 \u0437\u0430\u043b\u043e\u0433 \u0432 $175 \u043c\u043b\u043d<\/a> to remain on bail until sentencing on February 23, 2024. However, prosecutors <a href=\"https:\/\/u1f987.com\/en\/news\/prosecutors-seek-to-bar-cz-from-leaving-the-united-states\">\u043f\u043e\u0442\u0440\u0435\u0431\u043e\u0432\u0430\u043b\u0438 \u0437\u0430\u043f\u0440\u0435\u0442\u0438\u0442\u044c<\/a> the former head of the exchange leaving the United States, citing flight risk. They pointed to assets outside the country and minimal ties as risks.<\/p>\n<p>In the defense&#8217;s response to the motion, the lawyers argued that \u201cforeign citizenship is not equivalent to flight risk.\u201d In their view, the government\u2019s assumption that Zhao would not appear at sentencing should be rejected, as doing so could undermine the trust of his family and friends who guaranteed his release on bail.<\/p>\n<p>The core of the objections is that the judge&#8217;s \u201ctightly drafted and stringent\u201d conditions provide a \u201csufficient guarantee\u201d of CZ&#8217;s return to the United States. Additionally, the lawyers advanced arguments for the absence of flight risk by the entrepreneur:<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li>Zhao&#8217;s actions reflect his intent to take full responsibility and comply with the court&#8217;s decision;<\/li>\n<li>CZ is a public figure, has no criminal record and has pleaded guilty to a non\u2011violent offense not related to fraud;<\/li>\n<li>UAE citizenship does not entail flight risk.<\/li>\n<\/ul>\n<p>In the filing, the lawyers also cited a statement by the former Binance CEO, made during the November 21 hearing:<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abYour Honour, there is only one thing I want to say. I want to close this matter. Therefore I want to take responsibility and close this chapter in my life. [\u2026] Regarding the UAE matter \u2013 I was offered citizenship, I took it as an honour. I do not want to use this to say: \u2018Hey, protect me.\u2019 I do not want to use this. [\u2026] So I intend to return here and close this matter, otherwise I would not be here today\u00bb.<\/p>\n<\/blockquote>\n<h2 class=\\\"wp-block-heading\\\"><strong>Why Zhao Might Lose \u2014 Legal Expert\u2019s View<\/strong><\/h2>\n<p>Former SEC lawyer <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> John Reed Stark noted that U.S. District Judge Brian Cuchida deemed his decision \u2018dangerous\u2019. In his view, anyone who has appeared before this court has always faced flight risk.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Breaking News: 1) CZ Argues That He Should Be Allowed to Return To The UAE Until His Sentencing; And 2) CZ Plans To Argue For \u201cNo Jail Time\u201d (Or, In The Alternative, A Few Months Of Prison Time Coupled With A Few Months of Home Detention)<\/p>\n<p>As I predicted yesterday, the legal team\u2026 <a href=\\\"https:\/\/t.co\/akwiT7BXzD\\\">pic.twitter.com\/akwiT7BXzD<\/a><\/p>\n<p>\u2014 John Reed Stark (@JohnReedStark) <a href=\\\"https:\/\/twitter.com\/JohnReedStark\/status\/1728046901075820999?ref_src=twsrc%5Etfw\\\">November 24, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>However Stark noted that Judge Richard Jones could overturn the decision or strike a compromise and impose additional bail conditions.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abIt is worth noting that the objection to the motion also provides a sense of the arguments that CZ&#8217;s lawyers plan to present at sentencing. In short, CZ&#8217;s lawyers will try to secure a no-prison outcome with a probation term\u00bb,<\/p>\n<\/blockquote>\n<p>As reasons why such an outcome might be unlikely, Stark pointed out:<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li>Zhao&#8217;s close ties to the exchange \u2014 \u201cwhatever Binance did, it was at CZ&#8217;s direction and instruction\u201d;<\/li>\n<li>difficulties implementing AML, financing of terrorism and sanctions-compliance programs, including those arising from the former head of the exchange;<\/li>\n<li>deliberate withholding by Binance of information \u201con more than 100 000 suspicious transactions\u201d, linked to drugs, smuggling, fraud and other crimes, \u201cspecifically because of CZ\u201d.<\/li>\n<\/ul>\n<p>Stark believes the DOJ will take all possible steps to bring the former platform CEO to account.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abAs Binance&#8217;s CEO, Zhao deliberately committed a number of appalling crimes and abhorrent terrorist acts, and he must face the consequences\u00bb,<\/p>\n<\/blockquote>\n<p>He called it a \u2018mockery\u2019 if CZ, in attempting to atone for his crimes, were to face a $50 million fine and a period of home detention.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abIn short, the prosecutions of CZ\/Binance should be aimed solely at holding them to account\u00bb,<\/p>\n<\/blockquote>\n<h2 class=\\\"wp-block-heading\\\"><strong>Community Reaction<\/strong><\/h2>\n<p>CoinGeek founder Calvin Ayre, responding to Stark&#8217;s post, said that Binance \u201cis part of a global cartel of exchanges and platforms, including Eth and others, that organise market manipulation across the industry to rob their own clients in addition to other crimes\u201d.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Binance is part of a global cartel of exchanges and platforms that includes Eth and others that organize industry wide market manipulation to rob their own clients in addition to the other crimes\u2026that is a Fraud and this is not even mentioned in this\u2026.so its a lie to say he\u2026<\/p>\n<p>\u2014 Calvin Ayre (@CalvinAyre) <a href=\\\"https:\/\/twitter.com\/CalvinAyre\/status\/1728068278357024872?ref_src=twsrc%5Etfw\\\">November 24, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>One commenter noted that if CZ were a US citizen, \u2018he would have got off totally scot-free just like all the US banks and their officers have got off scot-free for the same criminal offences for over the past 50 years\u2019. <\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">In short. If CZ was an American citizen then he would have got off totally scot-free just like all the US banks and their officers have got off scot-free for the same criminal offences for over the past 50 years. There was no need for any US banks to plea for leniency as no\u2026<\/p>\n<p>\u2014 Allan Endresz (@EndreszAllan) <a href=\\\"https:\/\/twitter.com\/EndreszAllan\/status\/1728060690978705534?ref_src=twsrc%5Etfw\\\">November 24, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>A similar sentiment <a href=\\\"https:\/\/twitter.com\/JDKirkpatrick1\/status\/1728071476035654006\\\">was expressed<\/a> by another X user:<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abJP Morgan regularly manipulates the securities market, pays millions in fines, and no one ever goes to prison. I am not a fan of CZ, but I do not think there should be double standards\u00bb.<\/p>\n<\/blockquote>\n<p>Those reacting to the former SEC lawyer&#8217;s post included supporters as well.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">If he didn&#8217;t want to be there, he wouldn&#8217;t be there. I&#8217;m inclined to believe him.<\/p>\n<p>\u2014 nmuk (@nmuk) <a href=\\\"https:\/\/twitter.com\/nmuk\/status\/1728053829147697592?ref_src=twsrc%5Etfw\\\">November 24, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abIf he [Zhao] didn&#8217;t want to be there, he wouldn&#8217;t be there. I&#8217;m inclined to believe him\u00bb,<\/p>\n<\/blockquote>\n<p>As noted, after Zhao\u2019s departure, Richard Teng took over as Binance&#8217;s CEO.<\/p>\n<p>In a special feature for ForkLog, ForkLog studied the experience of the new head of the exchange and looked into how former colleagues assess the platform\u2019s prospects under his leadership.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CZ&#8217;s legal team representing former Binance chief Changpeng Zhao filed an objection to prosecutors&#8217; motion to revisit his current release terms.<\/p>\n","protected":false},"author":1,"featured_media":87503,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,935,1162,1150],"class_list":["post-87502","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-changpeng-zhao","tag-court-cases","tag-news-plus"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=87502"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87502\/revisions"}],"predecessor-version":[{"id":87504,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87502\/revisions\/87504"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/87503"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=87502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=87502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=87502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}