The US Department of Justice (DOJ) has said that former Binance CEO, Changpeng Zhao, is a flight risk. Indeed, the former Binance is set to be sentenced following his recent guilty plea. However, reports note that the Justice Department is not ready to allow him to leave the United States.
Coindesk reports that the DOJ does not seek for Zhao to be apprehended. However, it still does not diminish the fact they do not want him to leave the US. Subsequently, the report notes the department’s label of Zhao as a “manageable flight risk,” with Zhao seeking to leave the country.
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DOJ Calls Ex-Binance CEO a Manageable Flight Risk
The entire digital asset sector was shocked when the US Department of Justice announced its settlement to the years-long investigation of Binance. The resolution left the company with the founder and former CEO announcing his resignation. Subsequently, he is facing massive legal trouble.
Now, the DOJ has stated that ex-Binance CEO Changpeng Zhao is a flight risk. Indeed, the distinction was made as both sides sought to reach an agreement on Zhao’s status as sentencing approaches. Zhao, seeks the ability to leave the country, as he is a non-US citizen with passports in the United Arab Emirates (UAE) and Canada.
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However, the Justice Department is not so keen on the idea. Specifically, they have noted Zhao’s status as a “manageable flight risk.” Therefore, although they do not want him to be imprisoned prior to sentencing, they are seeking for him to remain in the United States.
According to US attorneys, the severity of the charges and potential sentence give Zhao an incentive to run. Moreover, the UAE has no extradition treaty with the United States. Subsequently, there is a high level of concern that he would not return if he was allowed to leave the country.