Last week, Binance’s former CEO Changpeng ‘CZ’ Zhao objected to a travel ban identified by Justice Department prosecutors as a flight risk. Facing a potential 10-year prison sentence, CZ, who was released on a $175 million bail after accepting the charges, wanted to return to the UAE before serving his sentence.
According to a court filing on November 27th, lawyer Matthew Diggs from Davis Wright Tremaine LLP will represent Changpeng Zhao. Diggs, a former federal prosecutor with over 15 years of criminal and regulatory experience, has a history of successfully assisting clients with white-collar crimes and investigations.
Diggs’ areas of expertise include health care fraud, environmental crimes, investment fraud, and tax cases. He has proven himself by successfully defending against False Claims Act investigations and other government sanctions in various complex cases. The objective of the Davis Wright Tremaine team defending CZ in the lawsuit brought by the US government is to significantly reduce the initially anticipated 10-year prison sentence.
CZ did not achieve the outcome he desired in court. During this time, Western Washington District Judge Richard Jones was not convinced to allow CZ to return to the United Arab Emirates to serve his sentence. Judge Jones suspended the decision of Magistrate Judge Brian A. Tsuchida, which allowed CZ to return to the UAE and wait for his sentence.
Former Binance CEO CZ is required to reside in the US until the court plaintiff’s review request is resolved. Despite facing a 10-year prison sentence, legal commentators suggest that it is unlikely that CZ will receive more than an 18-month sentence. CZ also agreed to pay a $50 million fine. Coinbase CEO Brian Armstrong commented on the matter, emphasizing the need to look forward to a future with clear regulations after the Binance settlement.