Pre-Sentencing Restrictions Imposed on Changpeng Zhao: An Antecedent to April’s Verdict
U.S. prosecutors have filed a request to impose stricter bond conditions on billionaire Changpeng Zhao, also known as CZ, the founder of Binance. This request comes as CZ awaits his sentencing in April for violating federal anti-money laundering laws. The proposed measures include surrendering his Canadian passport, providing advance notice of domestic travel, and obtaining prior approval for any change in residence.
CZ pleaded guilty in November to a charge related to the failure to maintain an effective anti-money laundering program, which resulted in his resignation as Binance’s CEO.
Under the current bond conditions, CZ would need to notify prosecutors and pretrial services at least three days in advance of any domestic travel, allowing them to voice objections if necessary. The new conditions also require the surrender of CZ’s current and expired Canadian passports, with a prohibition on obtaining any new passport without court approval. Similarly, any change in residence would require prior consent. While prosecutors argue that these measures are necessary to ensure CZ’s compliance, his legal team has opposed the proposal.
In December, Judge Richard Jones prohibited CZ from traveling outside the United States due to concerns over his substantial wealth and limited ties to the country, which could pose a flight risk. In late January, CZ’s request to return to the UAE for four weeks to attend to a family matter was denied by Judge Jones, despite offering his equity in Binance US as collateral, valued at $4.5 billion. CZ is currently residing in the U.S. on a $175 million personal recognisance bond.
In a separate development, Binance has agreed to pay over $4.3 billion to settle multiple federal charges, making it one of the largest corporate penalties in U.S. history. Attorney General Merrick Garland characterized this settlement as a significant criminal penalty imposed on the world’s largest cryptocurrency exchange.
The cryptocurrency community is closely monitoring the legal proceedings surrounding CZ, one of the industry’s most influential figures. The final hearing in April will have significant implications for CZ and cryptocurrency regulations as a whole.