Ex-Binance Chief CZ Labelled a ‘Flight Risk’ as His X Account Gets Restricted

“Trouble Doesn’t Travel Alone”

Binance has been the hot topic this week, with the drama around U.S. law enforcement and a settlement amid anti-money laundering and U.S. sanctions violation charges. Changpeng “CZ” Zhao resigned from his position of Binance CEO and faces his own time in court and likely in a United States jail over the allegations. And, if that would not be enough, his account on X, formerly Twitter, got temporarily suspended.

There is a saying in Chinese, “trouble doesn’t travel alone.” 祸不单行.

Changpeng “CZ” Zhao

This conveys the idea that misfortunes or difficulties often come in succession or together, rather than in isolation. CZ later admitted that the issue stemmed from him changing his profile name too often. He urged Elon Musk to train his algo detection bots as they wrongly target humans, yet letting bad bots slip.

In the end, it all turned out to be a storm in a teacup, and his account was live again. Notably the account of CZ has 8.7 million followers and is likely to have one of the largest crypto following on the platform.

Serious Risk of Flight

In a recent court filing, prosecutors argued against allowing CZ, a UAE citizen with minimal ties to the U.S., to leave the country before his sentencing on Feb. 23, 2024. Despite CZ currently being able to leave the U.S. under his bond agreement, which includes a US$ 15 million (AU$ 22.8 million) trust account and a $175 million personal recognisance bond, prosecutors deem this insufficient. They expressed concerns that if he leaves, they cannot secure the US$ 175 million (AU$ 266 million) bond due to most of his assets being outside the U.S., and his wealth could easily cover the rest of the funds. Additionally, the lack of an extradition treaty between the UAE and the U.S. compounds the issue.

During a Tuesday hearing, CZ’s attorneys claimed that restricting him to the U.S. would be hard for him and his family, as his wife and children cannot move to the U.S. for the months leading up to his February sentencing. The judge questioned if CZ’s voluntary surrender and guilty plea in the U.S. reduced the risk of flight, but prosecutors argued that willingly facing a guilty plea differs significantly from returning for potential prison time.