In a recent court filing, U.S. prosecutors have requested a tightening of the bond conditions for billionaire Changpeng Zhao aka CZ, the founder of Binance. This comes ahead of waiting for his sentencing in April for violating federal anti-money laundering laws. In brief, the proposed measures include surrendering his Canadian passport, providing advance notice of domestic travel, and restricting changing residence without prior approval.
Changpeng Zhao pleaded guilty in November to a charge related to failing to maintain an effective anti-money laundering program. This crime led to his resignation as Binance’s CEO.
Court to put restriction on all Zhaos travels
Under the current bond conditions, Zhao would need to notify prosecutors and pretrial services at least three days before any domestic travel, allowing them to voice objections if any.
The new conditions also call for the surrender of Zhao’s current Canadian passport and past expired passports. Prosecutors have also prevented him from obtaining any new one without the court’s approval.
Any change in residence would similarly require prior consent. While prosecutors argue these measures are necessary to ensure Zhao’s compliance, his legal team has opposed the proposal.
Zhao’s appeal to visit the UAE for a family emergency rejected
In December, Judge Richard Jones prohibited Zhao from traveling outside the United States citing concerns over his substantial wealth and limited ties to the country which posed a potential flight risk.
In late January, a letter revealed that Zhao had sought permission to return to the UAE for four weeks to attend to a family matter. Despite offering to pledge all of his equity in Binance US as collateral which was valued at $4.5 billion, Judge Jones denied the travel request on December 29. Zhao currently resides in the U.S. on a $175 million personal recognisance bond.
Judge sanctions Binance’s $4.3 Billion plea deal in US Court
Binance has agreed to pay over $4.3 billion to settle multiple federal charges, characterized by Attorney General Merrick Garland as one of the largest corporate penalties in U.S. history. This settlement marks one of the most substantial criminal penalties imposed in the United States, targeting the world’s largest cryptocurrency exchange.
The cryptocurrency community is closely watching the developments surrounding one of the most influential figures in the industry. As the legal proceedings undergo, everyone is anticipating the final hearing. The sentencing in April will have significant implications for both CZ and the likes of cryptocurrency regulations.
