Binance founder and former CEO, Changpeng Zhao, faces travel restrictions by U.S. judge as his February 2024 sentencing for banking law violations approaches.
Key Takeaways
- Binance founder Changpeng Zhao denied travel permission by U.S. District Judge Richard A. Jones for the second time ahead of February 2024 sentencing.
- Zhao’s planned trip details and reasons were submitted confidentially to the court.
- Federal prosecutors objected to Zhao’s return to the United Arab Emirates due to his wealth and the absence of an extradition treaty.
- The legal challenges stem from Binance and Zhao’s admission to not maintaining an effective anti-money laundering program, resulting in a $4.35 billion penalty.
Travel Restrictions for Binance Founder
Changpeng Zhao, founder and former CEO of Binance, has been barred from traveling by U.S. District Judge Richard A. Jones for the second time in the lead-up to his February 2024 sentencing for banking law violations. The judge rejected Zhao’s request to travel while on bail, and the specifics of his planned trip were submitted confidentially to the court.
Binance Founder Changpeng Zhao Blocked Again From Leaving US Ahead Of His February Sentencing: Binance (CRYPTO: BNB) founder and former CEO Changpeng Zhao has been denied travel permission by a U.S. judge for the second time, ahead of his sentencing in… https://t.co/9b956NDk6O pic.twitter.com/PIo5IUhYzU
— Jake P. Noch (@Jake_P_Noch) December 30, 2023
Federal Objections and Wealth Concerns
This denial follows a previous reversal by Judge Jones, who had initially granted Zhao permission to return to the United Arab Emirates before his sentencing.
Federal prosecutors raised objections, expressing concerns about Zhao’s substantial wealth and his intent to return to a country without an extradition treaty with the U.S. These factors influenced the judge’s decision to impose travel restrictions, highlighting the legal complexities surrounding Zhao’s case.
Admission of Guilt and Substantial Penalties
Changpeng Zhao voluntarily came to the U.S. to face charges related to Binance’s failure to maintain an effective anti-money laundering scheme. Both Zhao and Binance confessed to these charges, resulting in a historic $4.35 billion settlement.
The legal proceedings, known as US v. Zhao, 23-cr-00179, are currently ongoing in the U.S. District Court, Western District of Washington (Seattle).
To Conclude
Changpeng Zhao’s travel restrictions, imposed by a U.S. judge for the second time, add a layer of complexity to the legal proceedings leading up to his February 2024 sentencing.
The concerns raised by federal prosecutors regarding Zhao’s wealth and travel plans underscore the challenges faced by Binance and its founder in the aftermath of admitting to lapses in their anti-money laundering program. Despite these legal hurdles, the charges do not implicate misappropriation of user funds or market manipulation by Binance.
