The hammer is falling on Binance’s founder. Changpeng Zhao, or CZ as he’s known, faces a tightening grip from the U.S. court. New bail conditions restrict his movement and access to travel documents. Is this a sign of a tougher sentencing to come?
Read on to find out the latest developments in CZ’s money laundering case.
Tightening of the Rules
According to court documents filed on March 11, CZ must notify pretrial services before traveling between states within the U.S. Additionally, he has to hand over his current Canadian passport to a third-party custodian under his counsel’s supervision.
Furthermore, Zhao is directed to surrender all other current and expired passports to his counsel, with the authorization to return them only with court approval.
This modification in bail terms marks the second alteration issued by U.S. District Judge Richard Jones. Initially, Zhao was restricted from leaving the U.S., despite an earlier bond agreement that allowed him to travel to the United Arab Emirates.
Also Read: Nigerian Naira Collapses! Binance Blamed, Executives Held
Sentencing Delayed?
CZ pleaded guilty in November to violating U.S. anti-money laundering regulations, facing a potential 18-month prison sentence. However, his sentencing, initially set for March, has been pushed to April 30 for undisclosed reasons.
CZ’s guilty plea was related to breaching the Bank Secrecy Act and failing to maintain an effective anti-money laundering program at Binance. As part of the plea deal, CZ stepped down as CEO, and Binance paid $4.3 billion in penalties.
Sentencing Expectations
The Justice Department is expected to push for a strict penalty as the case progresses, according to former U.S. SEC employee John Reed Stark. This highlights the seriousness of the charges against CZ and the importance of following legal requirements.
