Representatives of the US Department of Justice have raised concerns about Changpeng Zhao, the former CEO of Binance, stating that he could face up to ten years in prison. This information comes after a new motion by regulators, emphasised former Ripple lawyer John Reed.
Prosecutors may push for a ten-year sentence for Zhao, despite defence claims of a limited term and no incentive for him to go into hiding. Reed said the upper limit of the legal term could be as long as 18 months, and prosecutors are prepared to push for a maximum sentence of 10 years.
Despite Zhao's $175 million bail to preserve his freedom, the DOJ has expressed confidence that he poses a substantial risk of fleeing. This has caused unrest and surprise in the context of the judge's UAE travel authorisation.
Reid emphasised that the charges against Zhao were not just against Binance, but also against him, claiming that his alleged actions had contributed to a number of offences for which he must now answer to the court.
The final decision on Zhao's ability to leave the U.S. will be made today by a judge. Some, including Reid, believe that permission to leave should not be granted, pointing to the risk of Zhao leaving and violating his terms of co-operation.