Despite the ongoing legal battle with CZ Binance and the US government, market experts believe the company will continue to maintain its position as the biggest crypto exchange in the world.
Changpeng Zhao (CZ), the founder and former CEO of the world’s largest cryptocurrency exchange Binance has hired Matthew Diggs, an ex-prosecutor in the United States with years of criminal and regulatory experience, to defend his interests in the ongoing settlement saga with the government.
Recall that Binance inked a $4.3 billion settlement deal with the US law enforcement agencies, including the country’s Commodities Futures Trading Commission (CFTC) and the Department of Justice (DOJ), which resulted in CZ’s resignation as the CEO of the exchange last week.
The former Binance boss pleaded guilty to money laundering violations and is facing up to 18 months in prison as part of the agreement with the US government.
However, despite being released on a $175 million personal recognizable bond, the DOJ insisted that CZ was a flight risk and has been denied returning to the United Arab Emirates pending a court hearing scheduled for sentencing in February 2024.
Diggs Joins Defense Team in High-Stakes Lawsuit Against CZ
According to a court document filed on November 27, the veteran lawyer and former US federal prosecutor filed a notice of attorney appearance to defend CZ.
The move comes after the ex-Binance boss failed to represent his interest and convince Judge Richard Jones of the US District Court for the Western District of Washington to grant him permission to return to his family in Dubai.
CZ was ordered to remain in the United States until his sentencing hearing in 2024 in accordance with the conditions of his bond release. However, with Diggs currently in the picture, the former enforcement officer may be able to persuade the court to let him return to his home in Dubai. The Chinese-born entrepreneur is a citizen of both Canada and the UAE.
The seasoned former prosecutor, also a member of the Davis Wright Tremaine, is known for handling intricate litigation matters and has defended against False Claims Act investigations and various government enforcement actions.
His experience includes assisting clients facing challenging white-collar cases and investigations. For over 15 years, he has handled diverse legal cases across different sectors, including healthcare fraud, environmental crimes, investment fraud, and tax prosecutions.
Binance to Maintain its Position as a Global Leader
Despite the ongoing legal battle with CZ Binance and the US government, market experts believe the company will continue to maintain its position as the biggest crypto exchange in the world.
Last week, Bernstein analysts led by Gautam Chhugani said the recent settlement with the US government had no negative impact on Binance outside the country despite recording outflows of around $1 billion.
Non-US retail customers remained optimistic about the exchange, and the experts predicted it would continue to be a major player outside the American market. Despite maintaining its dominance on an international level, analysts said the settlement will pave the way for more competition.
CZ had earlier clarified that the US government had dismissed all criminal charges against the company. According to him, the authorities no longer allege the exchange violated AML rules, mishandled users’ funds, or participated in market manipulation.
next