Prosecutors Request Changpeng Zhao Surrender All Passports Ahead Of Sentencing – The United States Attorney’s Office has put forward a request to a federal judge for the approval of additional travel constraints on former Binance CEO Changpeng “CZ” Zhao. In a filing dated February 23, submitted to the U.S. District Court for the Western District of Washington, U.S. Attorney Tessa Gorman sought Magistrate Judge Brian Tsuchida’s endorsement of a motion outlining the terms for CZ’s bail conditions.
The prosecutors urged that Zhao be confined to the contiguous United States until his sentencing hearing on April 30 and be required to provide three days’ notice for any travel plans to enable the government to voice objections. The U.S. Attorney’s Office further requested CZ to hand over his Canadian passport as well as “all other current and expired passports and travel documents” to his legal representatives.
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Zhao, who also holds citizenship in the United Arab Emirates, had sought permission to travel there to visit family prior to his sentencing, a request that the judge turned down. As per the filing, “Zhao’s counsel object to this motion as written,” indicating that his legal team may explore avenues for the former Binance CEO to depart the country.
In November 2023, CZ pleaded guilty to one felony count related to the failure to uphold an effective Anti-Money Laundering program at Binance. Since the indictment, he has remained at liberty on a $175 million bond. As part of a $4.3 billion agreement between the cryptocurrency exchange and U.S. authorities, Zhao resigned from his position as Binance CEO.
On February 23, Judge Richard Jones approved the $1.8 billion penalty and the forfeiture of $2.5 billion. However, CZ, Binance, and Binance.US are still embroiled in a civil lawsuit with the U.S. Securities and Exchange Commission, which was initiated in June 2023.
“This really is a case where the ethics of the company were compromised by greed,” said Judge Jones at the Feb. 23 hearing. Following CZ’s departure, Richard Teng, former head of regional markets at Binance, assumed the role of CEO. In a December 2023 interview, Teng portrayed the exchange as completely transformed compared to its state six years ago.
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