U.S. Department of Justice files motion for proposed protective order in CZ lawsuit to protect related sensitive information involved
CoinGape reported that based on a protective order motion filed on February 20, considering the sensitive information in CZ's lawsuit, a US lawyer applied for entry into the protective order. The Department of Justice stated that defendant CZ and defense lawyers did not oppose the request for a protective order. According to US prosecutors, CZ admitted to failing to maintain an effective anti-money laundering program. The evidence provided includes interviews with sensitive witnesses, third-party financial records, and third-party internal business records. The Department of Justice proposed an order in this motion to restrict public access to any information. "The proposed protective order will not be disseminated or distributed to anyone other than defense counsel, defense team members, and the defendant," the document said. In addition, the identities of sensitive witnesses will not be disclosed in public documents. Similar to recent sealing of unredacted letters and medical records, the identities of these witnesses will remain sealed.
US Judge Denies Binance Founder CZ's Request to Travel to UAE Despite Offering $4.5 Billion in Equity as Assurance
A US federal judge has rejected a request by Changpeng “CZ” Zhao, the founder and former CEO of Binance, to travel to the United Arab Emirates. Despite offering to post $4.5 billion of his Binance US equity as assurance that he would return, Zhao was denied permission to go to Abu Dhabi to be present for the hospitalization and surgery of an unnamed associate. Prosecutors argued that Zhao posed a flight risk given his substantial wealth abroad and his minimal ties to the United States. Binance has faced warnings and enforcement actions by regulators across the globe over compliance with anti-money laundering laws.
On December 30th, according to The Block report, the Western District Court of Seattle, Washington, USA, once again rejected CZ's "travel permit request" on Friday.
Binance, Binance.US, and Changpeng Zhao have filed a reply to the SEC's lawsuit, arguing that the regulator did not meet the requirements of the "Howey Test." The filing states that the SEC did not show that the exchanges' U.S. customers had any contracts that would meet the definition of an "investment contract." Binance also pushed back against the SEC's adding the exchange's guilty plea with the DOJ and consent order with FinCEN, or Zhao's own DOJ plea, in the ongoing case. The filing argues that securities laws wouldn't apply the same way the Bank Secrecy Act or International Emergency Economic Powers Act did.
US SEC: Although Binance and the Department of Justice have reached a settlement, the lawsuit should continue to advance
The US Securities and Exchange Commission (SEC) stated that the recent $4.3 billion settlement agreement between Binance Holdings Ltd. and the US Department of Justice is a support for its lawsuit against Binance, as reported by Bloomberg. Although the SEC did not participate in the settlement agreement, Binance and Changpeng Zhao had previously requested the court to dismiss the SEC's lawsuit. Both Binance and Changpeng Zhao have not commented on this statement.
Former CEO of Binance, CZ, has hired former federal prosecutor Matthew Diggs, who has extensive experience in white-collar crime, as his lawyer. Diggs is known for his expertise in handling complex legal cases, and his task is to defend CZ against possible charges that could result in 10 years of imprisonment.
Arthur Hayes: The United States’ handling of CZ and Binance is ridiculous. Cryptocurrency is one of the most important developments in the history of human civilization.
BitMEX co-founder Arthur Hayes wrote that the US government's treatment of CZ and Binance is absurd, highlighting the arbitrariness of national punishment. This absurd phenomenon tells us that cryptocurrency is one of the most important political, financial, and technological developments in human civilization history. It has such a powerful transformative power that in less than a decade, CZ can become one of the richest people in the world, and Binance can be more necessary for daily life than famous financial institutions that have existed for centuries. Hayes also said that since the US dollar is the largest financing currency in the world, if the credit price falls, all fixed supply assets such as Bitcoin and gold will rise in US dollar legal price. An important part of this bullish macro support is that it does not require Chinese companies and high net worth individuals to buy any Bitcoin. The interchangeability of global legal credit will determine the marginal legal dollar flowing into hard currency assets such as Bitcoin.
CZ posted on X platform stating that they have been reading about biotechnology and thinking about how to use encryption technology to speed up research funding in the field of biotechnology.
Former Director of the SEC Internet Enforcement Office John Reed Stark wrote on X platform, giving CZ some advice: If you can't stand the punishment, don't commit the crime, don't do it. If you can't afford the price, don't take your chances. If there is no reward on your head, don't go to sleep. Don't step your feet onto a dead-end street.