US Department of Justice requests detention again: Zhao Changpeng could face up to ten years in prison, UAE may not release him

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US Department of Justice requests detention again: Zhao Changpeng could face up to ten years in prison, UAE may not release him

Given that there is no extradition treaty between the United Arab Emirates and the United States, the ongoing legal battle between the U.S. Department of Justice and Changpeng Zhao (CZ), the founder of Binance, is still underway. It appears that the Department of Justice is adamant about not allowing CZ to return to the UAE to await his sentencing hearing.

The Department of Justice seeks to prevent Changpeng Zhao from returning to the UAE, CZ's ability to leave the U.S. will be determined by 11/27

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Defense Argument: CZ Has No Risk of Fleeing

According to legal documents, CZ's lawyers argue that although suspects awaiting trial in countries without extradition treaties are typically detained, this is an unusual case.

Because CZ had previously appeared in court voluntarily and received a positive evaluation from the judge at the bail hearing, indicating that CZ has no risk of fleeing and should be granted freedom before sentencing.

Reconstructing the Court Conversation: Zhao Changpeng Wants to Return to the UAE, Judge Determines CZ Actively Facing Charges, No Significant Risk of Fleeing

DOJ Prosecutor: CZ Could Face Up to Ten Years in Prison

The U.S. prosecutors, however, countered that despite the defense's claim that CZ may only face a "brief" prison sentence with no motive to flee, the reality is that the maximum sentence could be up to 18 months, and the U.S. could seek a statutory maximum of ten years.

The prosecutor pointed out that while the defense emphasized CZ's family ties and lack of prior detention, the potential sentence would undeniably have a significant impact on CZ, making it even more reason to impose travel restrictions on CZ.

Many factors are unfavorable for CZ to return to the UAE. He has no ties to the U.S., his family resides in the UAE, his assets are all abroad, not only is he a citizen of the UAE but also holds privileges. Although he has emphasized that he will not use this as a means to evade U.S. law, he has also indicated his close relationship with the UAE. Given this, if CZ ultimately refuses to return to the U.S., there is no reason to believe that the UAE would extradite him.