Former Binance CEO Changpeng Zhao Ordered to Surrender Passports
In a significant development regarding the legal case involving Changpeng Zhao, the former CEO of Binance, the United States has instructed him to surrender all his active or expired passports to a designated third party. This directive was revealed in a legal filing submitted on March 12, which changed Zhao’s bond conditions for release.
Travel Restrictions and Bans Imposed on Zhao
According to the filing, United States District Judge A. Jones, who is presiding over the case, has imposed travel restrictions on Zhao as part of his bond conditions:
- Zhao must remain within the borders of the United States until his sentencing.
- He must inform court authorities of any planned travel within the continental United States.
In addition to these restrictions, Zhao must also give his Canadian passport to a third-party custodian. This custodian will accompany him whenever he needs identification for travel purposes. Furthermore, Zhao is explicitly prohibited from applying for or obtaining a new passport or travel document without prior permission from the court. The legal filing specifies that the third parties entrusted with Zhao’s passports can only return them to him with explicit consent from pretrial services or the court.
US Tightens Grip on Former Binance CEO Zhao
The decision to impose strict travel restrictions on Changpeng Zhao comes after the U.S. government applied to modify his bond requirements last week. In response to Zhao’s argument that travel had not been an issue thus far, the prosecution emphasized that past experiences do not guarantee smooth travels in the future.
This latest development follows Changpeng Zhao’s guilty plea in November 2023 for violating U.S. anti-money laundering requirements. Binance, the world’s largest cryptocurrency exchange, was also accused of engaging in anti-money laundering, unlicensed money transmitting, and sanctions violations. These charges arose from Binance’s failure to register as a money-transmitting business and its violations related to the Bank Secrecy Act (BSA) and the International Emergency Economic Powers Act (IEEPA).
As part of the resolution, Binance agreed to pay over $4 billion to settle the investigation, making it one of the largest corporate penalties in U.S. history. Changpeng Zhao’s sentencing is scheduled for April 30, and he could face up to 18 months in prison.
Hot Take: Zhao’s Travel Restrictions Reflect Seriousness of the Case
The imposition of strict travel restrictions on Changpeng Zhao by the United States demonstrates the seriousness of the legal case against him. By requiring him to surrender his passports and remain within U.S. borders, the court is taking measures to ensure his presence during his sentencing.
This development follows Zhao’s guilty plea for violating anti-money laundering requirements and Binance’s agreement to pay a substantial penalty to settle the investigation. The actions taken by the U.S. government highlight their determination to hold individuals and companies accountable for illegal activities in the cryptocurrency industry.
As Changpeng Zhao awaits his sentencing, it remains to be seen how this case will impact both his personal life and the future of Binance. The outcome will undoubtedly have far-reaching implications for the cryptocurrency community as a whole.
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