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The United States Attorney’s Office has moved to impose further travel restrictions on Changpeng Zhao, the former CEO of cryptocurrency exchange Binance. The request was made in a filing to the U.S. District Court for the Western District of Washington on February 23, highlighting the ongoing legal challenges faced by Zhao.
U.S. Prosecutors Tighten Grip on Former Binance CEO Changpeng Zhao
U.S. Attorney Tessa Gorman has petitioned Magistrate Judge Brian Tsuchida to approve a motion that would restrict Zhao’s movements while he remains on bail. The proposed conditions require Zhao to stay within the continental United States until his sentencing hearing, scheduled for April 30. Additionally, Zhao is to provide a three-day notice for any intended travel within this period, allowing the government an opportunity to object.
Appreciate the support. But will try to stay off twitter for a while. 🙏 https://t.co/ApqEOzXHIa — CZ 🔶 BNB (@cz_binance) December 9, 2023
The filing also demands that Zhao surrender his Canadian passport along with “all other current and expired passports and travel documents” to his legal representatives. This request comes in light of Zhao’s dual citizenship in Canada and the United Arab Emirates, the latter being a destination he had expressed a desire to visit to see family. However, this request was previously denied by the court.
Legal Team’s Objections and Zhao’s Guilty Plea
Zhao’s legal team has reportedly objected to the motion as it stands, indicating a potential ongoing effort to negotiate terms that would allow him to leave the country. This legal tussle follows Zhao’s November 2023 guilty plea to a felony charge related to failing to maintain an effective Anti-Money Laundering program at Binance. Since the indictment, Zhao has been free on a $175 million bond.
The backdrop to these legal proceedings includes Zhao stepping down from his role at Binance. This move was part of a broader $4.3 billion agreement with U.S. authorities, which saw the court accepting a $1.8 billion fine and a forfeiture of $2.5 billion on February 23. Despite these developments, CZ, Binance, and Binance.US remain embroiled in a civil lawsuit with the U.S. Securities and Exchange Commission, stemming from a lawsuit filed in June 2023.
At the heart of the February 23 hearing, Judge Richard Jones criticized the ethical lapses of the company, attributing them to greed. Following Zhao’s departure, Richard Teng, previously Binance’s head of regional markets, has assumed the role of CEO.
This case continues to unfold, marking a pivotal moment in the intersection of cryptocurrency and regulatory oversight, underscoring the complexities and challenges of maintaining compliance within the rapidly evolving digital currency landscape.
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