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

Coingapestaff
November 28, 2023
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US SEC To Pause Ripple Lawsuit After Coinbase, Ex-SEC John Reed Stark

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.

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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

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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.

In his final comments, Stark suggests that Judge Jones should proceed with pre-trial services’ advice. This will bar CZ from traveling to the UAE until the sentencing hearing. This recommendation gains weight when considering CZ’s limited ties to the United States. The perceived risks associated with his strong connections to the UAE remain.

Also Read: Coinbase CEO: It’s Time to ‘Turn the Page’ After Binance Settlement

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.