Former SEC Official Foresees Binance Founder CZ’s Extended Stay in US

In a recent X post, former SEC Chief for Internet Enforcement John Reed Stark shed light on the ongoing US stay orders for Changpeng Zhao aka Binance CZ.

Binance CEO Changpeng Zhao finds himself in an uncertain position as Judge Richard A. Jones issues a stay on the condition allowing CZ to return to the United Arab Emirates (UAE) pending sentencing. The decision, outlined in a recent court order, compels CZ to remain in the Continental United States due to money laundering charges. The court is still reviewing the government’s indication for a reconsideration of his bond conditions.

Stark’s Prediction On Binance CZ Amid Flight Risks Concerns

Stark accurately put the unfolding drama in an X post predicting potential adjustments to CZ’s bond conditions. Stark suggested that the judge might opt for additional assurances or a delay in decision-making. Indeed, Judge Jones chose the latter due to potential flight risks.

Further, Stark highlighted that Judge Jones will order a delay of his decision so he can ponder the issues for a bit longer. The stay may lead to potential findings in the ongoing investigation.

The development takes a darker turn for CZ as the Department of Justice (DOJ) emphasizes the recommendation of the U.S. Federal District Court’s Pre-trial Services Division for his detention.

In their recent reply action, the DOJ rebuts the defense’s claims of misrepresentation, clarifying that Pre-trial Services did recommend detention for CZ. This revelation significantly complicates CZ’s legal standing.

Stark highlights the defense’s assertion that it was misleading for the United States to mention Pre-trial Services recommended detention. The United States clarified that they did not claim Pre-trial Services suggested or advocated for anything, merely noting their recommendation for detention.

Also Read: BitMEX Founder Lashes Out At US Agencies Over Treatment of CZ

CZ’s “Close Call” Raises Doubts, Restriction Increases

Judge Tsuchida said it was a tough decision to let CZ go back to the UAE. Stark thinks this means even the first judge isn’t sure about keeping things the way they are and might change it.