Adam Moskowitz, a prominent legal figure involved in various civil cases related to cryptocurrency firms, has filed a motion to depose Changpeng “CZ” Zhao, the former CEO of Binance. The motion, submitted on December 8 in the United States District Court for the Southern District of Florida Miami Division, asserts that Zhao’s testimony is essential for the claims and defences of all parties in a $1 billion lawsuit against Zhao, Binance, and cryptocurrency influencers. This lawsuit was previously ordered to be stayed by a court in August.
Moskowitz, who has represented clients in cases against high-profile crypto entities, emphasised the importance of Zhao’s testimony regardless of the legal proceedings’ outcome. The filing was prompted by a Washington judge’s order for Zhao to remain in the U.S. until his sentencing in February 2024. In November, U.S. authorities announced a $4.3 billion settlement with Binance, resulting in Zhao stepping down as CEO and pleading guilty to a felony charge.
Moskowitz highlighted the uncertainty surrounding Zhao’s potential prison sentence and the implications for arranging a deposition. He suggested that Zhao’s guilty plea to federal charges, indicating a lack of safeguards during his tenure as Binance CEO, could bolster some claims in the ongoing civil suit. The lawsuit alleges that Binance promoted unregistered securities, although the U.S. Securities and Exchange Commission (SEC) was not part of the settlement with Zhao, Binance, and the government.
“[W]e have no idea how long CZ will be sentenced to prison, could be 60 years or no years, we were certainly not involved in the discussions between CZ and the government,” said Moskowitz. “If he gets no jail time, he certainly flees back to UAE. If he gets jail time, it is not easy to arrange and require a deposition from prison.”
Moskowitz expressed that the SEC’s continued litigation against Zhao and Binance, asserting that the BNB token is an unregistered security, adds complexity to the case. Whether the motion for deposition will be granted remains uncertain, given Zhao’s departure from Binance leadership. Cointelegraph reached out to Binance for comment but received no response at the time of publication.