Key Takeaways:
- U.S. prosecutors are seeking tighter bond conditions for Changpeng “CZ” Zhao, the billionaire founder of Binance.
- The proposed conditions include surrendering his Canadian passport.
- Zhao would also need to provide at least three days’ notice to prosecutors before traveling within the United States.
U.S. prosecutors have requested a judge to impose stricter bond conditions on Changpeng “CZ” Zhao, the billionaire founder of Binance, as he awaits sentencing in April for violating a federal anti-money laundering law, according to court filings.
Zhao pleaded guilty in late November to failing to maintain an effective anti-money laundering program, a violation of the Bank Secrecy Act, and subsequently resigned as Binance’s CEO.
The proposed bond conditions would require Zhao to provide prosecutors and pretrial services with at least three days’ notice before any domestic travel to address any potential objections. Additionally, he would need to surrender his current Canadian passport and would be prohibited from applying for a new one without court permission. Changing his place of residence would also require prior approval.
Zhao’s legal team has objected to the proposal, although they did not immediately respond to CNBC’s request for comment.
Earlier in December, Judge Richard Jones prohibited Zhao from traveling outside the United States due to concerns about his considerable wealth and lack of ties to the United States, which could pose a flight risk if he were allowed to return to his home in the United Arab Emirates.
The latest filing from prosecutors in U.S. District Court in Seattle highlights recommendations from pretrial services officers to further restrict Changpeng “CZ” Zhao’s movements. They suggest limiting his travel to the western district of Washington and the district where he currently resides, along with potentially implementing a location-monitoring condition, although this is not explicitly requested in the filing.
Zhao, who holds Canadian citizenship, is currently out on a $175 million personal recognizance bond in the U.S. His legal team emphasizes that he has taken responsibility for his actions, including agreeing to pay a personal penalty of $150 million to the U.S. Commodity Futures Trading Commission as part of his settlement with the government.
In conjunction with Zhao’s guilty plea, Binance reached an agreement to pay over $4.3 billion to resolve multiple federal charges, with Attorney General Merrick Garland describing it as one of the largest corporate penalties in U.S. history.
Federal sentencing guidelines suggest Zhao could face a maximum of 18 months in prison, though prosecutors have reportedly considered seeking a harsher sentence.
In a letter to the court dated December 22, Zhao requested permission to return to the UAE for up to four weeks to attend to a personal matter involving someone scheduled for surgery. He offered to pledge all of his equity in Binance US, valued at $4.5 billion, to address concerns about flight risk.